Debt | - Part 2

Africa Finance Corp. Plans More Eurobonds for Infrastructure

LAGOS, Capital Markets in Africa: The Africa Finance Corp., a development-finance institution that funds infrastructure on the continent, plans to sell more Eurobonds to support energy-generation and logistics projects. The Lagos, Nigeria-based lender, which has financed projects in 26 African countries, has scope to borrow more offshore in its $1.5 billion funding strategy after raising 100 million Swiss francs ($103 million) in a debut three-year Eurobond in July, said Ini Urua, senior vice president for east and…

Brexit Offers Lifeline on $800 Billion Emerging Company Debt

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LAGOS, Capital Markets in Africa: Britain’s vote to exit the European Union has thrown a lifeline to emerging-market companies facing an $800 billion wall of maturing debt. By hindering the Federal Reserve’s plan to raise interest rates, the referendum result has led to speculation borrowing costs will remain lower for longer as policy makers attempt to prevent Europe’s turmoil turning into a recession. This means developing-nation companies that borrowed when it was cheaper to do so won’t have…

Sub-Saharan Africa: Long-term debt inflows rise 34%, China biggest bilateral creditor.

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Lagos, Nigeria, Capital Markets in Africa — The newly released 2016 edition of the International Debt Statistics (IDS) shows that external borrowing by countries in the Sub-Sahara Africa, excluding South Africa, has risen rapidly and been marked by a distinct change in borrowing patterns and creditor composition. Disbursements of long-term debt increased 34 percent in 2014 (to $54 billion), triple the comparable figures for other low- and middle-income countries, with private creditors accounting for 60 percent (50…

Nigeria: DMO comfortably raised US$350

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Nigerian Debt Management Office held its latest monthly auction of FGN bonds on Wednesday and comfortably raised its target of N70bn (US$350m). The total bid of N186bn was the highest since July 2014 and a sharp increase on the previous month’s N116bn. Local institutional buying picked up on the positive momentum generated by the elections. The offshore community also made an appearance: some players may have re-entered the market, having seen the theory of a…

IFC’s raises $5 mln in first Rwandan franc offshore bond

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KIGALI, Feb 13 (Reuters) – The World Bank’s private sector arm has raised 3.5 billion Rwandan francs ($5 million) with the first offshore bond in the Rwandan currency, it said on Friday. The landlocked central African nation of 11 million people has been attracting a steady stream of investors and firms drawn by its small but growing market, and its debut $400 million Eurobond in 2013 was heavily oversubscribed. “It was done to create an…

Nigeria to borrow N90billion in bonds

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Nigeria plans to raise 90 billion naira ($475 mln) in sovereign bonds with maturities ranging between five and 20 years at its next regular auction on Feb. 11, the Debt Management Office (DMO) said on Tuesday.The debt office said it will auction 35 billion naira worth of the 5-year bond, 30 billion naira of the 10-year paper and 25 billion of the 20-year debt note, using the Dutch Auction System. The 5-year debt note is…

Surge in dollar-debt leaves some African nations exposed

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A surge in foreign debt issuance by African nations has left some fragile economies exposed to the risk of billions of dollars in foreign exchange related losses if the U.S. currency strengthens abruptly, a think-tank said on Wednesday. Judith Tyson, senior researcher at the Overseas Development Institute (ODI), said the notional losses in terms of higher interest and capital repayments could total $11 billion (£7 billion) in the event of a slump of 35 percent…

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