Africa Bonds

Aveng launched a R2bn ($187m) convertible bond on Wednesday morning, with the deal emerging during a tougher times for the South African construction and engineering firm.

Ivory Coast opened books on a 10 year dollar bond on Wednesday but political uncertainty and a chequered repayment history made for varying views on pricing, with opinions on the yield guidance ranging from “a bit tight” to “slightly cheap.” But the sovereign had no trouble attracting interest, with UK and European order books going subject by 10am GMT.

A dispute between shareholders of the Algerian subsidiary of Bahrain’s Al Salam has seen Algeria’s central bank commission place the bank under temporary administration.

The Republic of Senegal starts investor meetings next week for a Eurobond. Ivory Coast is already on the road for its own deal. Should both issuers pick the same maturity — 10 years is popular with African sovereigns — bankers on the Senegal deal expect the two credits to price close together. Analysts, however, disagree about specific yields, but think Senegal will have to price wider.

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Helios Towers Nigeria sold a debut dollar bond on Tuesday — only the second international corporate bond from that country. The notes offer a useful new benchmark for Nigerian corporates, with at least one follow-on deal expected in the next few weeks. On the financial side First Bank of Nigeria began a roadshow ahead of a tier two subordinated note. But First City Monument Bank postponed a debut bond deal, after failing to see eye to eye with investors on pricing.

The International Islamic Liquidity Management Corp is set to re-issue $860m of commercial paper style sukuk next week – its seventh issue to date under its short term sukuk programme.

Nigerian financial First City Monument Bank has postponed its debut bond plans.

Helios Towers Nigeria sold a debut dollar bond on Tuesday — only the second international corporate bond ever from that country. The notes were trading up a full cash point higher in the secondary market on Wednesday and offer a new benchmark for Nigeria corporates, with at least one follow on deal expected in the next few weeks.

With the first half of the year completed, regular IFIS league table-topper HSBC has taken a commanding lead in dollar sukuk for share of total issuance value, but Emirates NBD and JP Morgan have surged up the ranks for first ever top five placings, with ENBD on more dollar deals in the period than any other bank. Meanwhile, CIMB has opened a gap in global sukuk arranging after trailing Maybank at this time last year, but the competition looks set to heat up further in the second half.

Helios Towers Nigeria is set to price a $250m five year non-call three deal on Tuesday afternoon, having received over $600m in orders for its debut dollar bond.

Ivory Coast has mandated BNP Paribas, Citi and Deutsche Bank to organise a series of fixed income investor meetings in London and the US starting on Wednesday. A 144A/Reg S dollar benchmark may follow, its first since civil war broke out in the country three years ago.