News and developments on African capital markets: African securities, African stock exchanges, African equities, African bonds, African private equity/venture capital, and African social impact investment. Twitter @africancapital, LinkedIn African Securities Exchanges group.
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.
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%.
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’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 plans to return to Eurobond markets in 2015 and raise up to $1 billion for infrastructure, including an airport and power plants.
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, 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 is planning to issue a first Eurobond of up to $1 billion, but the issue could be delayed until after June, according to Reuters.
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.
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.