The Markets | - Part 110

Nedbank Sees Short-Term Rally, Longer-Term Pain for Rand in 2019

JOHANNESBURG (Capital Markets in Africa) – The rand’s wild ride isn’t over, according to Nedbank analysts Reezwana Sumad and Walter de Wet. A slowdown in global growth, an escalation in the trade war, an uncertain Brexit and higher global interest rates are just some of the risks the currency will face this year. Nedbank base case sees rand in range of 14-15 per dollar in 2019 From a technical perspective, the USDZAR could rally toward 13 in the…

Deep in a Panama Rainforest, First Quantum Bondholders Spy Prize

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – First Quantum Minerals Ltd. is poised to fire up a giant copper project in Panama, thousands of miles from its beleaguered minesin Zambia. For bondholders, that’s a welcome distance. The Canadian copper company is ramping up production at the Cobre Panama plant this year, even as a mining tax hike forces it to shed jobs and cut production at its Zambian facilities. With Panama slated to become a more prominent place of operations, bondholders should benefit…

Sonia Gets Clean Sweep in 2019 Sterling Bonds as Libor Fades

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LAGOS (Capital Markets in Africa) – U.K. regulators are seeing some success as they try to shift the sterling bond market away from scandal-hit Libor. Five all-new floating-rate pound notes have come to market this year, and all of them have been tied to the Sterling Overnight Interbank Average rather than Libor. FMS Wertmanagement, Lloyds Banking Group Plc and International Finance Corp were the latest names to join the offering list. The five deals, totaling at least 3.5 billion pounds…

MTN Nigeria Deal Fails to Fuel Shares as More Trouble Feared

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LAGOS (Capital Markets in Africa) – MTN Group Ltd. executives may have expected investors to cut them a little slack after they got potential liabilities of $8.1 billion in Nigeria reduced to $53 million last month. Not so. MTN stock has risen just 2.8 percent since the settlement on Dec. 24, still 20 percent below its price in late August. That’s when Nigeria’s central bank first alleged that the Johannesburg-based wireless carrier had illegally repatriated funds…

Sibanye Counts Hit to Earnings as Strike at Gold Mines Drags On

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JOHANNESBURG (Capital Markets in Africa) – Sibanye Gold Ltd. said a protracted strike at its South African gold mines may hurt earnings at a time when the producer remains under pressure to reduce debt. Thousands of workers started a strike in November over pay, and there’s inconsistent output at three mines amid limited operations, spokesman James Wellsted said, without saying how many workers are showing up. Sibanye is assessing the impact on its finances, he said. While the…

Ivory Coast Is Said to Plan Eurobond Sale of at Least $1 Billion

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ABIDJAN (Capital Markets in Africa) – Ivory Coast is planning to sell at least $1 billion in Eurobonds as the West African nation weighs its finance needs against rising debt costs, according to three people familiar with the matter. The world’s top cocoa grower, which budgeted to raise 1.44 trillion CFA francs ($2.5 billion) in debt in 2019, is reviewing the amount of securities it can sell on the regional market and will seek the remaining…

Mozambique Loan Bribe Claims May Void Debts, Law Professor Says

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MAPUTO (Capital Markets in Africa) – The arrest of Mozambique’s ex-finance minister and three former Credit Suisse AG managers over alleged bribes could render void about $2 billion of project loans to the country, according to Mitu Gulati, a law professor at Duke University in the U.S. The projects, a tuna fishing and coastal protection system, were created to enrich those involved, and at least $200 million of the proceeds went to bribes and kickbacks, according to an…

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