Finance

HARARE (Capital Markets in Africa) — S&P Global Ratings Services cut its assessment of Zambia’s debt to selective default after the southern African nation said it couldn’t meet payments and skipped a coupon on its Eurobonds last week. The action is the latest blow to Africa’s second-biggest copper producer, which is trying to convince bondholders to give it a six-month interest-payment holiday while it drafts debt-restructuring plans. The rating company, which didn’t wait for a…

LUSAKA (Capital Markets in Africa) — The clock is ticking for Zambia to convince reluctant bondholders to accept an interest-payment holiday while it works out a debt-restructuring strategy. If investors refuse Zambia’s request for a six-month standstill in a key vote on Tuesday, it may become the first African nation to default since the onset of the coronavirus. That could set a precedent for how cash-strapped governments treat private and Chinese creditors. The southern African…

NEW YORK (Bloomberg) — Working from home hasn’t slowed down Wall Street’s trading desks. The five biggest U.S. investment banks are on pace for their first $100 billion years for trading revenue in more than a decade. In just three quarters, they’ve already generated almost $84 billion, more than any full year since 2010. Sell-side traders rode a wave of activity as markets plunged at the start of pandemic-spurred lockdowns before embarking on dramatic rebounds….

LAGOS (Capital Markets in Africa) — One of two candidates to lead the World Trade Organization said she wants the body to overcome its problems so that it can create a level playing field for international commerce and see a return to a multilateral system. “Let us get back to a multilateral system. Let’s strengthen that — that is what will serve the world and let’s do less of the bilateral spats that we see,”…

MAPUTO (Capital Markets in Africa) — Mozambique published its proposed model for a sovereign wealth fund as it prepares to reap as much as $96 billion — more than six times the size of its current gross domestic product — from liquefied natural gas projects that companies including Total SE are building. The developments, which are the biggest private investments yet in Africa, could make Mozambique the continent’s second-biggest producer of the fuel. The central…

LAGOS (Capital Markets in Africa) — Nigerian lawmakers have approved a plan to borrow as much as 4.28 trillion naira ($11 billion) from both domestic and foreign debt markets to support its expenditure in 2021. The National Assembly gave the go-ahead on Wednesday after debating the government’s medium-term expenditure plan covering the next three years. President Muhammadu Buhari is scheduled to present the 2021 budget proposals before lawmakers on Thursday. The spending plan provides for an estimated…

LAGOS (Capital Markets in Africa) — Goldman Sachs Group Inc. boosted the size of a new credit fund to $14 billion in what is shaping up to be one of the largest debut investment vehicles ever raised. The bank, which set out with a target of $5 billion to $10 billion, is now expecting to finish fundraising with a $14 billion war chest to pour into companies in need of fresh liquidity. A Goldman representative…