The Markets

LAGOS (Capital Markets in Africa) — A debt-relief initiative for poor nations is losing momentum as credit premiums narrow and lenders balk at the complexities of a concerted halt in payments. Private creditors won’t rush to join a G-20 led the effort to ease debt burdens, while borrowers may also be wary of joining the plan as their economies heal after the coronavirus-led selloff, potentially improving market access for issuers. Defaults may still pick up…

LAGOS (Capital Markets in Africa) — In Africa’s biggest economy, the hunt for dollars could threaten the survival of many manufacturers, even when they have a lot of nairas. The Central Bank of Nigeria has been rationing foreign exchange in efforts to protect the local currency amid the crash in oil prices and coronavirus outbreak. It only resumed weekly dollar sales of $100 million for small businesses and expenses such as tuition late in April. That means…

LAGOS (Capital Markets in Africa) — Foreign investors in Nigeria trapped by the lack of dollar liquidity are reinvesting in short-term debt, driving down yields to new lows. Discount rates on the high-yielding instruments dropped to the lowest levels since April 2016 as investors with nowhere to go piled into them. The stop rate for one-year paper, also known as Open Market Operation bills, fell to 9.9% at a central bank auction on Thursday, the…

LAGOS (Capital Markets in Africa) — The Nigerian Stock Exchange expects more delays in initial public offerings as the coronavirus pandemic weighs on Africa’s second-biggest market, according to the chief executive. “We don’t think we will see IPOs in the short term, given some of the uncertainties Covid-19 has brought,” CEO Oscar Onyema said at a virtual conference on Wednesday. Companies seeking to raise capital are showing a preference for rights issues and private placements,…

JOHANNESBURG (Capital Markets in Africa) — South Africa’s Public Investment Corp. appointed Abel Sitholeas its chief executive officer, filling a post vacated 18 months ago by his predecessor over accusations of questionable investment decisions. The appointment comes two months after a judicial inquiry found senior management flouted internal procedures and recommended sweeping changes to laws that govern the PIC. President Cyril Ramaphosa ordered the investigation in October 2018, one of a handful he’s instituted to probe alleged…

NEW YORK (Capital Markets in Africa) — Jamie Dimon sees “pretty good odds” of a fast economic rebound starting in the third quarter thanks to the U.S. government’s stimulus programs and the strength of the consumer going into the pandemic. “You could see a fairly rapid recovery,” the JPMorgan Chase & Co. chief executive officer said Tuesday at a virtual conference hosted by Deutsche Bank AG. “The government has been pretty responsive, large companies have…

LAGOS (Capital Markets in Africa) — Solvency concerns in the developing world are nothing new. But as governments stare down the humanitarian and economic shocks of the coronavirus pandemic, some emerging markets with weak financial positions are at greater risk of defaulting on their debts. More than 100 nations have asked the International Monetary Fund for help, and the Institute of International Finance is coordinating an effort to offer some relief to the poorest countries….