The Markets

LAGOS (Capital Markets in Africa) – We may have to add Algeria to the growing list of OPEC countries whose oil production is suffering involuntary declines, expanding the so-called “Fragile Five” to a “Shaky Six” if protests in the North African country start to disrupt the flow of oil. Five OPEC countries — Angola, Iran, Libya, Nigeria and Venezuela — are already experiencing unplanned production declines as a result of under-investment to offset natural declines,…

LAGOS (Capital Markets in Africa) – MTN Group Ltd. plans to push ahead with an initial public offering of its Nigerian unit once Africa’s biggest wireless carrier resolves a $2 billion tax dispute in the country. When the tax matter has been settled, “the board can assign a value to the company and we do an IPO,” spokesman Tobechukwu Okigbo told reporters in Lagos on Wednesday. “It is difficult to put a value on it when…

LAGOS (Capital Markets in Africa) – The dollar-bond market remains unruffled by what could become a torrent of new-bond sales from African governments: the yields are far too attractive to worry about excess supply for now. A measure of African sovereign dollar-bond yields headed for the biggest two-day drop in a month even as governments from South Africa to Ghana were testing the water for potential bond sales. Still, the gauge hovered above its 10-year average, acting as a…

ACCRA (Capital Markets in Africa) – Ghanaian officials are preparing to meet fixed-income investors in the U.S. and London this week as they look to issue a $3 billion Eurobond. It could be a tough sales pitch. An offering from the West African nation’s government may well be imminent, but only if officials are satisfied with the price that traders demand. That’s a big if, given Ghana’s battle with the world’s weakest currency this year, and concerns…

LONDON (Capital Markets in Africa) – The pound slid in a swift turn of fortunes on speculation that a revised Brexit deal negotiated overnight won’t pass Parliament. Sterling fell more than 1 percent after U.K. Attorney General Geoffrey Cox said that legal risks remained over the Irish backstop, damping the prospect of Prime Minister Theresa May garnering enough support from lawmakers in a vote Tuesday. U.K. government bonds erased an earlier decline. “Sterling has been knocked back on the news that…

LONDON (Capital Markets in Africa) – London’s commerical property market has become the latest casualty of Brexit. Spending on U.K. offices, malls and warehouses plunged more than 40 percent in the first two months of the year to 4.3 billion pounds ($5.6 billion), according to research firm Property Data. With less than three weeks left before the U.K.’s scheduled withdrawal from the European Union, buyers are watching to see if the attempts to prevent a chaotic no-deal withdrawal…

BENIN (Capital Markets in Africa) – Bond investors may be about to welcome a new kid on the emerging-market block: Benin. The West African country — gross domestic product about $10 billion — is readying a series of meetings with would-be takers for a first ever sale of Eurobonds, according to a person familiar with the matter. Citigroup Inc., Natixis SA and Societe Generale SA have been hired to organize the meetings, which will take place…