Finance

JOHANNESBURG (Capital Marketds in Africa) – South Africa’s pledge not to let Eskom Holdings SOC Ltd. fail is enticing yield-starved investors to the company’s dollar debt. Bondholders from New York to Seoul say they’re happy to hold onto the power company’s securities — and in some cases add to their holdings — because of their extra return relative to the country’s sovereign debt. The government’s assurance that it won’t let the company default, effectively guaranteeing the debt,…

LONDON (Capital Markets in Africa) – The U.K., France and Germany have called for restraint in the South China Sea amid reports that Chinese and Vietnamese vessels are facing off in the disputed waters over competing territorial claims. The tensions “could lead to insecurity and instability in the region,” they said in a joint statement issued Thursday. The three nations, without mentioning Vietnam or China, said the legal framework set out by the United Nations Convention on…

HARARE (Capital Markets in Africa) – Fuel and food dominate Zimbabwe’s import bill, showing the government’s efforts to keep the economy running and store shelves stocked. Zimbabwe imported almost $80 million’s worth of diesel last month, 30% less than in June, according to data published by the Zimbabwe National Statistics Agency. Diesel remains Zimbabwe’s biggest import, followed by unleaded gasoline, durum wheat and electricity. The country is buckling under an economic crisis compounded by the…

JOHANNESBURG (Capital Markets in Africa) – Seriti Resources, a South African mining company, won a bid to acquire South32 Ltd.’s thermal-coal assets in the country, according to two people familiar with the process. Final offers were in a range of $300 million to $350 million, according to one of the people, who asked not to be identified because the information isn’t public. South32 started a search last year for buyers of its South Africa Energy Coal…

LONDON (Capital Markets in Africa) – British exporters are to be enrolled in a key customs system so they can trade with the European Union after Britain’s scheduled departure on Oct. 31. The U.K. tax authority will automatically issue more than 88,000 companies with an Economic Operator Registration and Identification number over the next two weeks, the Treasury said in a statement on Wednesday. Without it, the firms would no longer be able to trade…

LAGOS (Capital Markets in Africa) – China’s biggest energy company is backing away from direct purchases of Venezuelan crude as the Trump administration tightens sanctions against the South American nation. China National Petroleum Corp. has canceled plans to load about 5 million barrels worth of Venezuelan oil onto ships this month in the aftermath of the latest executive order by President Donald Trump, according to people with knowledge of the situation who asked not to be…