The Markets | - Part 204

Nigeria cuts size of domestic bond auction as yields rise

LAGOS (Capital Markets in Africa) – Nigeria sold far fewer bonds than it offered on Wednesday, as investors worried about rising inflation demanded higher yields from a government looking to spend its way out of recession. Africa’s largest economy raised 69.2 billion naira ($227 mln) in bonds maturing in five, 10 and 20 years’ time, less than the 95 billion naira it had wanted. Investors were demanding yields of up to 18 percent for the…

Metal-Backed Funds Hottest Since 2009 as Markets Tighten

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – Investors are warming to industrial-metal funds to take advantage of the biggest annual price rally in seven years. Some $320 million poured into long-only exchange-traded funds this year through Dec. 9, poised for the biggest inflow since 2009, according to data compiled by Bloomberg Intelligence. Money is returning as the demand outlook improves, prompting Bank of America Merrill Lynch to raise price forecasts for copper, lead and zinc, while Citigroup Inc. said there’s “cautious…

Old Mutual to cut stake in asset management arm via offering

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – Financial services group Old Mutual Plc said it would sell 13 million shares in its OM Asset Management Plc arm through a public offering, as the group prepares to split into its four main businesses. The proposed split was revealed in March as regulatory changes in Europe and South Africa have made Old Mutual, which started out in 1845 as a life insurance firm in Cape Town, more complex…

AfDB approves the first Multi-jurisdictional Fixed Income ETF in Africa

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PORT LOUIS (Capital Markets in Africa) – The African Development Bank (AfDB) has appointed MCB Investment Management (MCBIM), a subsidiary of MCB Capital Markets, as Fund Manager for its first multi-jurisdictional Fixed Income Exchange Traded Fund (ETF) in Africa. The Board of Directors of the AfDB has also approved a seed equity capital investment of USD 25 million for the ADBF. The primary objective of the African Domestic Bond ETF (ADBF) is to encourage bond…

Free-Float Rollback Targeted in Nigeria Lawmaker’s Currency Bill

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – A Nigerian lawmaker is proposing a new currency law that would give the central bank legal powers to set exchange rates, effectively rolling back the nation’s six-month-old free float. The bill, sponsored by opposition politician John Enoh, would repeal existing foreign-exchange legislation, under which market rates are “mutually agreed” between counterparties, and allow the Abuja-based regulator to decide those rates itself. The draft has been through two readings in the Senate and will…

OPEC’s Ideal Price Is $60 to Avoid Shale Revival, Nigeria Says

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LAGOS (Capital Markets in Africa) – Oil prices at $60 a barrel would be “ideal” for OPEC, as higher levels risk sparking a recovery in competing supplies from the U.S., according to Nigeria’s petroleum minister. The “urgency” felt by the Organization of Petroleum Exporting Countries and its partners to end the oil rout will ensure they adhere to their Dec. 10 agreement to cut supplies, Emmanuel Kachikwu said in a Bloomberg Televisioninterview. The accord should push prices…

Tanzania aims for debut Eurobond in 2017/18 – ministry

Posted on by The Editorial Team

DAR ES SALAAM (Capital Markets in Africa) – Tanzania aims to issue its first Eurobond in fiscal 2017/18 to fund new infrastructure, the Finance and Planning Ministry said on Thursday, after repeated delays in the launch as it sought a credit rating. It did not say how much the bond would be worth, but said the government wanted to raise $900 million in the financial year starting July 1 to fund infrastructure projects. President John…

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