African Bonds |

Ivory Coast Is Said to Plan Eurobond Sale of at Least $1 Billion

ABIDJAN (Capital Markets in Africa) – Ivory Coast is planning to sell at least $1 billion in Eurobonds as the West African nation weighs its finance needs against rising debt costs, according to three people familiar with the matter. The world’s top cocoa grower, which budgeted to raise 1.44 trillion CFA francs ($2.5 billion) in debt in 2019, is reviewing the amount of securities it can sell on the regional market and will seek the remaining…

While Rand Bulls Toasted the SARB, Stock and Bond Traders Fled

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Currency traders may have taken heart from the South African Reserve Bank’s first interest-rate hike since early 2016 on Thursday, but foreign investors reacted by fleeing the country. Even as the rand strengthened after the rate decision, leaving it poised for its best month this year, outflows from South African markets soared. Foreign investors sold a net 8.6 billion rand ($620 million) of equities and local-currency bonds, the most since May 9, according…

South Africa Looks for Extra $1.8 Billion of Spending Cuts

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JOHANNESBURG (Capital Markets in Africa) – South Africa will look to cut spending by a further 25 billion rand ($1.8 billion) over the next three years as the nation tries to avert another downgrade of its rand debt to junk. President Jacob Zuma on Monday asked the Presidential Fiscal Committee, led by Finance Minister Malusi Gigaba, to finalize the plans for expenditure reductions for the 2019 fiscal year that starts in April. This is in addition to the…

Nigeria States Seen Issuing Sukuk Bonds Next Year

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LAGOS (Capital Markets in Africa) – Some Nigerian states are working toward issuing sukuk bonds within a year as more investors are attracted to Islamic finance in Africa’s biggest oil-producing country, transaction advisers say. Nigeria’s federal government has put 100 billion naira ($282 million) in sukuk bonds on sale at 16.47 percent from Sept. 14 to Sept. 20 in its first ever such offering. The proceeds of the sale would be used for road construction…

Foreign Holdings of Egypt Debt Reach $7.5 Billion, Official Says

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CAIRO (Capital Markets in Africa) – Foreign investors are lapping up Egypt’s local-currency debt. Overseas holdings of Treasury bills rose by more than 10 percent in a week to 136 billion pounds ($7.5 billion) as of May 30, Samy Khallaf, head of the Finance Ministry’s public debt division, said on Wednesday. That compares with about 10.1 billion pounds at the end of December, central bank data show. Investors have been pouring money into Egyptian debt and…

Exploring The Benefits Of Bond Issuance In Nigeria

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LAGOS, Nigeria, Capital Markets in Africa: Tax Savings Benefit Issuers of bonds enjoy some tax benefits from the deductible nature of the interest on bonds. On one hand this lowers the issuers’ taxes. On the other hand, dividends paid to equity holders are not tax-deductible and must come from income after-tax. Tax savings, therefore, help further reduce a company’s debt financing cost. Cheaper Cost Source of Funding Debt is generally cheaper than equity, because debt…