Africa Bonds

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.

Luxembourg’s KBL Private Bankers dropped out as a dealer when International Islamic Liquidity Management Corporation (IILM) returned to the market on Thursday with its rolling $490m short term sukuk.

Two key growth areas for international capital markets are set come together in the first green and socially responsible sukuk offerings, writes Dan Alderson. The World Bank is endorsing the product through involvement in two new projects due this year.

This week’s unveiling of socially responsible investment and green sukuk projects at the Islamic Financial Services Board by the World Bank put an inspiring twist in the essence of what Islamic finance is meant to be about — ethical investment, lest anyone had forgotten. But it also illuminated the catchword the IFSB most wants to promote: inclusivity.

The World Bank has begun a multi-faceted drive in Islamic finance that should see at least one sukuk come to market before the end of the year, according to senior officials at the organisation.

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Nigeria's Diamond Bank sold a $200m five year bond on Wednesday at the upper end of its price range and lower end of its target size. But the bonds still dropped over two cash points in the secondary market after pricing.