Africa Bonds

Nigerian financial Access Bank opened books on its first tier two dollar bond on Monday afternoon and had almost $400m in orders by Tuesday morning. The issuer is aiming to price the bond on Tuesday afternoon, although bankers away from the bond were skeptical about appetite for more Nigerian FIG supply.

Morocco is unlikely to issue its first ever sukuk this year and the country’s Islamic banking looks set for more delays, according to a senior parliamentary advisor.

Kenya has released initial price thoughts of low 6% yield area for a five year benchmark bond and low 7% for a 10 year. But terrorism this year in the country, the most recent bout in hotels in coastal Mpeketoni on Sunday night, is likely to impact tourism which accounted for around 12% of the country’s GDP in 2013, and investors are already cautious around the country's large current account deficit.

The Kingdom of Morocco is aiming to put a flourish to the end of this week’s CEEMEA bond issuance, with initial price thoughts out for a 10 year euro deal. It opened books on Friday morning and aims to price the bond this afternoon.

US private equity firm KKR has invested $200m in Afriflora, an Ethiopian flower producer, as it seeks to establish roots in Africa’s fast-growing economy.

Private equity firm KKR has invested $200m in Afriflora, an Ethiopian flower producer, as it seeks to establish roots in Africa’s fast-growing economy.

Access Bank is aiming to become only the second Nigerian issuer to launch a tier two dollar bond, and starts a roadshow next week.

Kenya will start investor meetings on Thursday ahead of a long awaited dollar bond. The roadshow starts just days after African Eurobonds delivered one of their best weekly returns of the year, driven by tightening US Treasuries and real money interest in long dated paper.

The CEEMEA market was back on form after a holiday induced slowdown last week. International Bank of Azerbaijan (IBA) and Russian ABH Financial are both aiming to price dollar bonds on Wednesday, while Morocco and Access Bank have added themselves to the African pipeline.

The Kingdom of Morocco has mandated for a euro transaction, aiming to joining a long line of sovereigns that have ended a lengthy absence from that market this year.

Jordan will look to issue both local and foreign currency sukuk early next year, with ministry and central bank officials meeting over the next two to three weeks to discuss the debut plans.

Dubai should push on with its plan to create a central Shariah board. Although the emirate has made good progress in striving to become the self-styled “centre for the Islamic economy”, the time is ripe for a breakthrough that would create a lasting legacy.