Africa Bonds

Russia and South Africa have given their sovereign peers a superb demonstration of the deal sizes on offer in the CEEMEA market. The Russian Federation launched a long awaited multi-tranche bond taking $6.96bn across euros and dollars, while South Africa printed a well oversubscribed $2bn deal. Bankers hope the two transactions will encourage the long line of countries considering deals to follow, but both deals also made clear the need for big new issue concessions.

The Republic of South Africa pulled in $7.4bn in orders for a $2bn 12 year global bond on Monday. Debt bankers on and away from the deal disagreed on the new issue premium paid, but the bond’s performance in the secondary market argued in favour of the leads’ strategy.

South Africa opened books on a 12 year dollar deal on Monday morning, with initial price thoughts offering what investors said was a large premium.

After months of unprecedented local currency bond fund inflows courtesy of international investors, that market is now under pressure amid rising US Treasury rates and a sudden aversion to EM risk. These markets will not be dampened by foreign fiscal policy forever though, and when rates settle and stability returns some sovereigns will be far better placed to draw cautious buyers back into their local markets.

Islamic finance will remain part of Egypt’s economic landscape, according to the country’s finance minister Ahmed Galal.

There is just over one week left to add your votes in this year’s IFIS poll of Islamic market excellence. The deadline for voting is Monday, August 19, with winners announced at the IFIS Islamic Finance Inaugural Dinner 2013 on September 18 in Dubai.

Global sukuk issuance in 2013 has lagged 2012’s record levels by some way, with the gap growing wider in recent months. But a strong end to the year, led by large sovereign deals, could help reduce the shortfall.

Global sukuk issuance in 2013 has lagged 2012’s record levels by some way, with the gap growing wider in recent months. But a strong end to the year, led by large sovereign deals, could help reduce the shortfall.

The Islamic Development Bank has agreed a €750m facility for Pakistan – by far its biggest loan to the country to date, according to IFIS data. Meanwhile, Nigeria has asked IsDB for a $450m loan.

Euromoney Conferences will examine Jordan's new sukuk bill when it returns to Amman on September 17 for the third Euromoney Jordan Conference. The event will be held with both the patronage and presence of Jordan’s prime minister Abdullah Ensour.

It has hit more than a few bumps along the way but the International Islamic Liquidity Management Corp’s plans to issue sukuk commercial paper — the first of its kind in the Islamic market — finally look to be coming good. The company said on Thursday that it will issue a $490m debut this month, after more than 2-1/2 years of work on the project.

First Bank of Nigeria priced the first dollar tier two bond from the country in over six years on Wednesday, and analysts are expecting its peers to follow. But the deal achieved only a modest oversubscription and relied on the domestic bid for support. First Bank’s weaker compatriots could find it hard to drum up international interest without offering prohibitive premiums.