The Markets

LAGOS (Capital Markets in Africa) – More jumbo bond sellers in Europe may include sterling tranches as a Brexit-fueled decline in borrowing costs bolsters the appeal of a diversified investor base. Siemens AG is marketing a benchmark five-year pound bond on Tuesday, together with a four-part euro benchmark offering. LVMH Moet Hennessy Louis Vuitton SE and Comcast Corp. also sold pound notes alongside euro tranches last week, following a decline in sterling bond yields caused by expectations for an interest-rate cut. On…

BENIN (Capital Markets in Africa) – Benin is considering to again sell euro-denominated bonds in 2020 as the West African nation seeks to benefit from strong demand for the continent’s high-yielding foreign-currency debt, according to people familiar with the matter. The $10-billion economy, which sold a debut offshore bond of 500 million euros ($548 million) in March, will probably sell a bigger amount of debt in an issuance that would probably take place in the second…

LONDON (Capital Markets in Africa)- The Nigerian Stock Exchange is urging stockbrokers to buy dormant licenses or combine with other operators rather than apply for new ones as the bourse prepares to go public. Members of the exchange will vote on March 3 to convert from a member-owned mutual organization into a public limited-liability company. The exchange, which has 252 dealing members as well as 166 listed equities and 154 bonds, will change its name to Nigerian…

LONDON (Capital Markets in Africa)- The rapidly spreading coronavirus has wreaked havoc across much of the developed world, yet not a single case has been confirmed so far in Africa — the continent that’s least equipped to deal with the epidemic. Health officials are still bracing themselves for the worst. Two-way travel between Africa and China, the epicenter of the respiratory illness that’s infected more than 31,000 people since late December, has surged over recent…

LONDON (Capital Markets in Africa) – Outgoing Bank of England chief Mark Carney is leaving his successor with a mystery to puzzle over. As Andrew Bailey takes over from the Canadian in March, he’ll find officials at the U.K. central bank closely studying why inflation isn’t as strong as labor costs and import prices would suggest it should be. The matter was so perturbing for policymakers at Carney’s final decision that, even after an in-depth discussion, they pledged to…

NEW YORK (Capital Markets in Africa) – U.S. equity futures rose with stocks on Thursday as China’s plans for tariff cuts on American imports added to optimism the global economy will weather the hit from the coronavirus. Treasuries fluctuated. Contracts on the main American equity benchmarks all pointed to the fourth day of gains after China said it will lower levies on $75 billion of U.S. goods next week, likely satisfying part of the interim…

ACCRA (Capital Markets in Africa)- Ghana sold sub-Saharan Africa’s longest-ever Eurobond as part of a $3 billion deal that was almost five times oversubscribed. West Africa’s second-biggest economy issued a $750 million tranche, which amortizes and has an average life of 40 years, at 8.875%, making it the highest-yielding sovereign dollar bond so far this year. Pricing was reduced from the initial talk of 9.4%. Ghanaian Finance Minister Ken Ofori-Atta discusses the Eurobond. He speaks…