Africa Bonds

First City Monument Bank (FCMB) is the latest Nigerian financial to lay down plans for a debut bond deal. But bankers on earlier Nigerian transactions have warned that international investors are interested only in the top tier banks, and First City's comparatively small size and exposure to Nigeria's retail market could make things difficult for an inaugural issue.

The Republic of Kenya ploughed ahead with a dual tranche debut Eurobond on Monday despite terrorist attacks in coastal Mpeketoni on Sunday and Monday nights. But investors still flocked to place over $8bn in orders, allowing Kenya to price a colossal $2bn for its inaugural offering.

Access Bank sold its first tier two bond this week and, in contrast to earlier attempts from Nigerian financials, printed a larger than expected deal that traded up in the secondary market. The deal was a welcome sign of appetite for Nigerian risk, but emphasised that international interest extends only to a select few, said bankers on the deal.

Access Bank sold its first ever tier two bond this week and, in contrast to earlier attempts from Nigerian financials, printed a larger than expected deal that traded up in the secondary market.

CEEMEA bond bankers are calling the market the best they’ve seen since spring last year and issuers, particularly from the Middle East and Africa, are rushing to take advantage of it while it lasts and before Ramadan and the summer slowdown shrink the potential investor base.

The Republic of Kenya ploughed ahead with a dual tranche debut Eurobond on Monday despite terrorist attacks in coastal Mpeketoni on Sunday and Monday nights. The headlines had only a marginal effect on market sentiment and Kenya drew well over $8bn of orders for its $2bn bond transaction.

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.