African Bond Market |

Deep in a Panama Rainforest, First Quantum Bondholders Spy Prize

LAGOS (Capital Markets in Africa) – First Quantum Minerals Ltd. is poised to fire up a giant copper project in Panama, thousands of miles from its beleaguered minesin Zambia. For bondholders, that’s a welcome distance. The Canadian copper company is ramping up production at the Cobre Panama plant this year, even as a mining tax hike forces it to shed jobs and cut production at its Zambian facilities. With Panama slated to become a more prominent place of operations, bondholders should benefit…

Relief Still Far Off After Lost Year: African Markets in 2019

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Traders in African markets have had a year to forget, and there are signs the rout’s not over yet. The continent’s stocks and bonds have performed worse than those of all other emerging-market regions in 2018, reversing their outperformance of last year. The sell-off has left equities in nations such as South Africa, Egypt, Nigeria and Kenya at or near their cheapest levels in years. And the yields of Eurobonds issued by governments…

South Africa Sees Receptive Market for $3 Billion Bond Sale

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – South Africa plans to tap international markets for as much as $3 billion as the country seeks to take advantage of relatively low rates and strong demand from yield-hungry investors. “We will be coming shortly and taking advantage of the favourable market conditions,” Tshepiso Moahloli, chief director of liability management at the National Treasury, told reporters in London after meetings with investors. “The market is conducive and we’re keen to…

Top Frontier Bond Manager Sees Best Value in Local Debt

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – One of the most successful money managers in the world’s riskiest markets piled into local-currency debt this year, and plans to stick with the bet for 2018. Kevin Daly, who runs Aberdeen Asset Management Plc’s $125 million frontier-markets bond fund, outperformed 99 percent of peers this year as he doubled investments in domestic government notes. Now almost a third of his holdings are non-dollar assets, including local securities from Egypt, Mongolia,…

Bonds Extend Rally Ahead of Linker Auction

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – South Africa’s 10-year government bonds rose for a fourth day, set for the longest winning streak in two months, ahead of National Treasury’s inflation-linked bond auction, scheduled later Friday. The rand weakened against the dollar, broadly in line with other emerging-market currencies. National Treasury plans to sell 900m rand ($63.4 million) across inflation-linked bonds maturing in 2029, 2033 and 2050. This is the first linker auction with an increased issuance size,…

South Africa Tests Investor Appetite in Biggest Bond Auction Yet

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – South Africa’s widening budget deficit is going to cost it. Just how much, the Treasury will find out when it holds its biggest auction yet of local-currency debt on Tuesday. Benchmark 10-year yields have climbed more than 60 basis points since Oct. 25, when Finance Minister Malusi Gigaba said the government will need to raise an additional 122 billion rand ($8.4 billion) of debt over the next three years to plug…

Ghana Misses $816 Million Bond Target After Extended Bidding

Posted on by The Editorial Team

ACCRA (Capital Markets in Africa) – Ghana missed its target to sell 3.6 billion cedis ($816 million) of non-sovereign bonds to settle the debt of energy utilities as demand for the securities fell short even after the offer was extended by a week. The West African nation placed 2.3 billion cedis of the 10-year bonds at 19.5 percent after receiving 2.8 billion cedis in bids demanding a yield of as much as 20 percent, joint deal…

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