African Debt Markets

South Africa Tests Eurobond Market After Rating Downgrade

JOHANNESBURG (Capital Markets in Africa) – South Africa’s borrowing costs may rise in a Eurobond offering Tuesday, the country’s first since it joined the ranks of high-yield issuers after two companies lowered its credit ratings to junk. The country is selling 10-year dollar bonds with initial price guidance of about 5 percent, the National Treasury said in an emailed response to questions, without disclosing the amount. That’s higher than the rate on existing securities due…

African Sovereign Eurobond 2015 Review: Eurobond issuance steady at $6.75billion, but with a higher premium

Posted on by The Editorial Team

Lagos, Nigeria, Capital Markets in Africa — The year 2015 was a challenging year for African economies as a result of falling commodity prices, lower demand from China and the hike in the US Fed rates. In spite of this, the Eurobond issuance by African sovereigns still came to US$6.750 billion for 2015 compared to the record US$8.7 billion issued in 2014. The market value weighted average issue yield is at 7.90 percent (a higher premium compared to other emerging economy Eurobonds)….

African Sovereign Eurobond October 2015 Review: Yield narrowing, Ghana and Namibia issue US$1b and US$750m resp. in Oct …

Posted on by The Editorial Team

Lagos, Nigeria, Capital Markets in Africa — The economic pressure on limited resources continued to have significant impact on African countries, as a result of downtrend in the commodity prices. So, most African countries are cash squeeze, forcing governments to reduce spending as debt rises and instigating central banks to implement aggressive monetary policy tightening to control inflation. The inability of government to meet its obligation has resulted to Students’ unrest in South Africa against increase in tuition fee…

African Development Bank issues 0.75% US$1 billion 2-year global benchmark due 3 November 2017

Posted on by The Editorial Team

On Tuesday, October 27, 2015, the African Development Bank (AfDB) successfully launched and priced a new 1 billion 2-year US dollar global benchmark due November 3, 2017. This is the AfDB’s second US dollar global benchmark of the year following a successful 5-year benchmark transaction executed in February, and its first 2-year global benchmark since 2009. The 2-year benchmark transaction was announced on Monday, October 26th at 1:30 p.m. London time with initial pricing thoughts in…

Republic of Angola Enters Eurobond Markets with 10-year benchmark bond of US$1.5 billion

Posted on by The Editorial Team

Luanda, Angola, Capital Markets in Africa — Republic of Angola launched its first 10-year benchmark Eurobond on Thursday with the aim of raising US$1.5 billion for long-term economic development and to benchmark the country, according to the Angolan Finance Ministry. The Finance Ministry stated also that a sovereign issuance could enhance Angola’s transparency in the management of its public accounts and better manage the state’s financing costs. The statement further emphasized that the sovereign debt…

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