London Stock Exchange financing African growth
There are 108 African companies listed or trading on the London Stock Exchange with total market capitalization of over $200 billion ($271bn). In the last 10 years they have raised more than $16 bn on London’s markets.
Soaring trading on Nigeria’s FMDQ market for fixed income and fx
Nigeria’s booming fixed interest and currency securities exchange FMDQ OTC Plc (“over-the-counter”) recorded market turnover of NGN93.9 trillion ($471.7 billion) for the 8 months to 31 August.
Demand soars for Ethiopia’s debut $1bn Eurobond, yields 6.625%
Ethiopia saw soaring demand yesterday (4 Dec) for its debut $1bn Eurobond, after a quick US roadshow. Total demand was $2.6bn and the yield on the 10-year bond was settled at a relatively low 6.625%.
Nairobi SE trades bonds on new automated trading system
The Nairobi Securities Exchange went live trading government and corporate bonds on an automated trading system, marking another step into Africa for South Africa’s financial software development company Securities Trading & Technology Pty (STT).
Ethiopia to ring in new year with Eurobond
Ethiopia’s Finance Minister is meeting international banks Barclays, Citi and BNP Paribas about a planned Eurobond issue for late December 2014 or January 2015. The amount is unknown, the duration is likely to be “at least 10 years”.
Rwanda to fund airport and power with $1bn Eurobond in 2015
Rwanda plans to return to Eurobond markets in 2015 and raise up to $1 billion for infrastructure, including an airport and power plants.
Kenya pledges lower domestic rates after $8.8bn bids for its $2bn Eurobonds
Global investors offered a record $8.8bn and Kenya issued $0.5bn in a 5-year Eurobond at 5.875% and $1.5bn of a 10-year Eurobond at 6.875%.
Ethiopia gets credit ratings from S&P and Fitch, plans Eurobond
Ethiopia, Africa’s fifth biggest economy, is thinking of a debut Eurobond, after it received its first international credit ratings on 9 May: it got B from Fitch and B/B from Standard & Poors.
Tanzania plans debut Eurobond of $500m-$1bn
Tanzania is planning to issue a first Eurobond of up to $1 billion, but the issue could be delayed until after June, according to Reuters.
Sub-Saharan African sovereigns outside SA to raise $7bn in fixed income
African countries (apart from South Africa) are set to place $7 billion of debt this year, buoyed by low interest rates and a huge global appetite. It is more than the previous 5 years combined and African capital markets are feeling the boom.
Rwanda’s $400m Eurobond will pay for power, planes and conferences
The first Eurobond issued by Rwanda, due to mature in May 2023, raised $400 million at 6.875% and the money will go to start generating hydroelectricity by December with further expansion in June 2014 and also pay for airline expansion and a convention centre.
Zambia’s debut $750m Eurobond puts focus on Africa
Zambia went to the global market yesterday (13 September) with its first eurobond, a USD750 million 10-year bond priced at a 5.625%. It will be used to fund its budget and invest in infrastructure and the issue highlights “great appetite” for African credit.
More appetite for African bonds in 2012
2012 could be an active year for African bonds and particularly eurobonds, judging by the 5.5 times oversubscription for the Namibia’s debut $500 million, 10-year Eurobond. However, timing and terms of issues will be crucial in the turbulent markets.
Namibia’s first US$500m Eurobond
The Namibian government issued a debut US$500 million, 10-year Eurobond on 27 October and got a price of 5.75%, taking advantage of a lull in the capital markets turmoil.
Kenya’s Transcentury private equity firm to list on Nairobi SE
Kenyan private equity firm TransCentury is to list through introduction at the Nairobi Stock Exchange on 14 July at a price of KES50 (USD0.58) a share. The firm began as an investment club and is valued at KES13.35 billion ($148.7 million).
International lenders back Egypt debt, domestic yields climb
Egypt is chasing its short-term domestic market to fund ballooning Government deficits, but seems to be preparing for a new Eurobond issue to replace $1 bn in 8.75% Eurobonds maturing in July. US President Barack Obama’s May guarantee on $1 billion of Egyptian debt could cut the country’s borrowing costs by $100 mn.
London Stock Exchange scores on African listings
The London Stock Exchange has long been a global centre for capital, particularly where African investments are concerned. It is also the world centre for Eurobonds and several leading African equities are traded in London.
Nigerian bank’s $0.5 bn high yield eurobond
Nigeria’s Guaranty Trust Bank is coming to the market with a $500 million Eurobond, which may roll out into a $2 billion offering. The bank is listed on the Nigerian and London Stock Exchanges.
Senegal’s $500m Eurobond offers good yield
Senegal has successfully re-priced its yield curve by issuing a more liquid 10-year $500 million Eurobond carrying a coupon of 8.75%. The bond was priced at 97.57 when it was bid on 6 May, the equivalent of a yield of 9.125%.
Bonds soar, cocoa prices fall as CI rebels advance fast
Rebels in Cote d’Ivoire made rapid advances towards Abidjan yesterday (30 March), where fighting could be fierce. Prices rallied yesterday on the €2.3 Eurobond and Bloomberg reported a 7% climb to 42.688 cents in the dollar nominal value, while cocoa prices fell $70.