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Africa Finance Corporation carries out $150 million Sukuk on Nasdaq Dubai

LAGOS (Capital Markets in Africa) – Africa Finance Corporation (AFC) has carried out a 150 million US dollar Islamic financing transaction on the Murabahah platform of Nasdaq Dubai, the international financial exchange serving the Middle East and Africa. The transaction was executed to facilitate the issuance by AFC of a 150 million US dollar Sukuk, which was the first US dollar Sukuk to be issued by any multilateral African institution. It was also the first…

Kenya Hires StanChart, Citigroup, RMB for $800 Million Syndicated Loan

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NAIROBI (Capital Markets in Africa) – Kenya’s government mandated four international banks to raise $800 million in syndicated loans that authorities need to boost foreign-currency reserves and plug a widening budget deficit, according to two people familiar with the agreement. The East African nation’s Treasury informed the Nairobi-based units of Citigroup Inc., Standard Bank Group Ltd., Standard Chartered Plc and Rand Merchant Bank on Tuesday that they were appointed to arrange the financing, the people said, asking not to be identified…

AfDB approves the first Multi-jurisdictional Fixed Income ETF in Africa

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PORT LOUIS (Capital Markets in Africa) – The African Development Bank (AfDB) has appointed MCB Investment Management (MCBIM), a subsidiary of MCB Capital Markets, as Fund Manager for its first multi-jurisdictional Fixed Income Exchange Traded Fund (ETF) in Africa. The Board of Directors of the AfDB has also approved a seed equity capital investment of USD 25 million for the ADBF. The primary objective of the African Domestic Bond ETF (ADBF) is to encourage bond…

Ivory Coast returns to sovereign sukuk market, after Togo debut

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ABIDJAN, Capital Markets in Africa: Ivory Coast plans to complete a sale of 150 billion CFA francs ($263 million) worth of Islamic bonds later this month, the transaction’s lead arranger said on Tuesday, following Togo’s debut sale of sovereign sukuk launched last month. The two West African nations join Senegal in tapping the market for sukuk, helping expand the use of Islamic financing options outside of the industry’s core centres in the Middle East and…

Escaping Brexit Pushes South Africa Stock Buying to 7-Year High

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SOUTH AFRICA, Capital Markets in Africa: As markets tumbled after last week’s Brexit vote, foreigners bought South African shares at the fastest pace in more than seven years, seeking havens in gold producers and dollar-earners. Investors bought a net 4.22 billion rand ($272 million) of the country’s stocks Friday after the U.K. referendum result was known, bringing inflows for the week to 14.5 billion rand, the most since March 2009, according to Johannesburg Stock Exchange data. The…

African Sovereign Eurobond September 2015 Review: Yield widening, US$449 Billion Amount Outstanding …

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Lagos, Nigeria, Capital Markets in Africa — The continued low oil and commodity price environment had doubled whammy on most African countries (especially commodity dependent countries) by reducing foreign earnings and depreciation of currency. New issuance from the continent dropped to $4.25 billion in the first nine months of 2015, with only Egypt (US$1.5 billion) Cote D’Ivoire (US$ 1 billion), Gabon (US$ 500 million) and Zambia (US$1.25 billion) coming to the market a disappointing figure relative to a of…

African Sovereign Eurobond August 2015 Review: Yield widening due to falling commodity prices

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Lagos, Nigeria, Capital Markets in Africa — A remarkable feature in Fixed Income markets this year has been the widening in African sovereign Eurobond yields. This weakening is in part due to the expected rise in US bond yields and fallen commodity prices (as most African countries are commodities dependent) as well as the anticipated decline in global growth due to China economic downturn. Since January 2015 yields on Zambia’s 2022 and Zambia’s 2024 Eurobond have…