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Fixed Income | Investec Sees South African Bonds as Resilient in Junk Downgrade

Johannesburg, South Africa, Capital Markets in Africa: South Africa’s corporate bond market is better equipped than other emerging countries to deal with a cut in the nation’s credit rating to below investment grade, said Hendrik du Toit, chief executive officer of Investec Asset Management Ltd. The country has a relatively small pool of dollar bonds, compared with rand-denominated debt, and a large domestic money management business with the capacity to invest in the assets, Du Toit…

Zambia to issue up to $2 bln 10-year Eurobond – govt

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LUSAKA, Zambia (Capital Markets in Africa) – Zambia will issue a 10-year Eurobond of as much as $2 billion on Thursday, one of frontier Africa’s biggest international bonds, to fund a widening budget deficit in the copper exporter, a presidential spokesman said. “We expect the Eurobond to be issued today. It will be between $1.5 billion and $2 billion and the maturing date is 10 years,” Amos Chanda, a spokesman for President Edgar Lungu, told…

Nigeria’s Federal Government, Sub-Nationals in Fiscal Crisis?

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Lagos, Nigeria (Capital Market in Africa) — The lower crude oil receipts accruing to government – stemming from the fall in crude oil prices and global supply glut — has significantly put a strain on public finances. Monthly oil revenue accruing to all tiers of government dropped by 54.1% Y-o-Y to N286.2bn in April 2015 relative to N622.9bn in April 2014, the lowest level in over two years. Consequently, FAAC allocation to Sub-National governments has…

Kenya : Centum Investment’s US$61 million bond oversubscribed

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Nairobi, Kenya (Capital Markets in Africa) — Centum Investments five-year corporate bond worth up to KES 6 billion has been oversubscribed by 38 percent attracting bids worth KES 8.3 billion. The bond is made up of a fixed-rate component and an equity-linked portion that will give a variable return determined by the firm’s net asset value. The total amount accepted for the fixed rate notes is KSE 3.9 billion while for the equity linked notes is KES 2.1 billion, with…

Nigeria Market Watch: Week Ending 15th May, 2015

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Weekly Equities Market Review and Outlook After posting marginal losses on all trading days in the previous week, the All Share Index (ASI) showed mixed performances this week. Though the index recorded declines on the first two trading days this week, the equities market closed the week positive (+0.1%) W-o-W as bargain hunting positioning drove the index northwards in the last three trading days of the week. Market capitalization also added N18.6bn W-o-W to settle…

Global Corporate Bond Issurance and Outlook

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After advancing by 33% annually in 2012 to a record $1.134 trillion, 2013’s US$-denominated investment grade (IG) bond issuance dipped by -1.5% to $1.119 trillion. Following 2012’s 48% annual surge, US$-denominated high yield bond issuance advanced by 11% to a record $431 billion in 2013. Also, after gaining 5% in 2012, newly rated high yield bank loan programs increased by 38% annually to $579 billion in 2013. In 2014, US$-denominated bond issuance edged up by…

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