The Markets

JOHANNESBURG (Capital Markets in Africa) – The embattled South African state power utility’s debt burden, described by Goldman Sachs Group Inc. as the biggest threat to the nation’s economy, has burgeoned, compounding the difficulty the government faces in formulating a turnaround plan. Eskom Holdings SOC Ltd.’s debt is approaching 500 billion rand ($35 billion), according to data compiled by Bloomberg from public records, including bonds and issued loans, up from about 370 billion rand a…

LAGOS (Capital Markets in Africa) – MTN Group Ltd. has been promising to list its Nigerian business on the Lagos stock exchange for almost three years, yet it took just 16 minutes for the mobile-phone giant to cause a sensation. After a lengthy ceremony of speeches, congratulations and rounds of applause delayed the start of trading for more than half an hour, it looked as though MTN Nigeria Communications Plc may not trade at all with the market…

LONDON (Capital Markets in Africa) – That’s the advice from fund managers and strategists opting to reduce exposure to the U.K. amid a lack of Brexit clarity and escalating trade tensions. BlueBay Asset Management LLP is shorting the pound and gilts, while UBS Wealth Management is avoiding U.K. government debt and long-term pound bullNomura International Plc has ended its buy recommendation on sterling. Prime Minister Theresa May has now set the week of June 3 to bring…

LAGOS (Capital Markets in Africa) – MTN Group Ltd. will list its Nigeria unit in Lagos on Thursday in a move that will value the pan-African wireless carrier’s largest business at 1.8 trillion naira ($5 billion). The move is a step toward a partial sell down of the carrier’s majority 79% stake, and was agreed to as part of the settlement of a $1 billion regulatory fine three years ago. MTN Nigeria is the market leader…

JOHANNESBURG (Capital Markets Africa) – Vodacom Group Ltd. is turning to its East African mobile-phone carrier Safaricom Plc to deliver higher earnings in the coming years. South Africa’s top wireless carrier forecast “mid-high single-digit growth rate” in operating profit for the next three years, alongside the release of full-year financial results on Monday. The carrier updated its outlook to include Nairobi-based Safaricom, in which it purchased a 35% stake from its parent company Vodafone Group Plc…

LONDON (Capital Markets in Africa) – Broadband and pay TV provider Virgin Media is the latest company braving the U.K.’s unloved debt market to raise funds following a lengthy delay to Britain’s departure from the European Union. The company sold 300 million pounds ($390 million) of bonds late on Wednesday as part of a $1.2 billion equivalent deal. On the same day, Co-Operative Group, which provides a range of services from funerals to supermarkets, also sold 300 million…

LAGOS (Capital Markets in Africa) – Emirates Group, owner of the world’s biggest long-haul airline, suffered a 44% decline in annual earnings as higher oil prices, a stronger dollar and lower occupancy levels hit margins at a time when the Dubai-based company faces increasing competition from rivals. Net income shrank to 2.32 billion dirhams ($632 million) in the year through March, the lowest since fiscal 2012, according to a statement Thursday. Staff won’t get a bonus after…