Africa Bonds

Eskom drew $4bn in orders for its $1bn 10 year bond on Tuesday. Analysts argued the issuer was generous with its pricing, but bookrunners countered it offered the same concession as many other CEEMEA credits and wisely took advantage of a stable window in an uncertain market.

Banque Centrale de Tunisie, the central bank of Tunisia, priced a 10 year Samurai bond on Wednesday guaranteed by the Japan Bank for International Cooperation. The size fell short and the pricing wide of the issuer’s last Samurai deal, though bankers involved with the trade said the result was positive given the instability in North Africa throughout 2013.

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. The deal achieved only a modest oversubscription, but syndicate bankers suggested this was down to tight pricing.

The International Islamic Liquidity Management Corp will this month issue $490m of sukuk commercial paper — the first of its kind in the Islamic market — after more than 2-1/2 years of work on the project.

Eskom drew $4bn in orders for its $1bn 10 year bond on Tuesday, although analysts argued the issuer was generous with its pricing.

First Bank of Nigeria is aiming to price its tier two dollar bond on Wednesday afternoon and already has enough orders for a benchmark print, said bankers working on the deal.

Banque Centrale de Tunisie, the central bank of Tunisia, priced a 10 year Samurai bond on Wednesday guaranteed by the Japan Bank for International Cooperation. The size fell short and the pricing wide of the issuer’s last Samurai deal, though bankers involved with the trade said the result was positive given the instability in North Africa throughout 2013. The deal followed Mexico’s own triple-tranche Samurai deal, which was priced on Tuesday.

South Africa’s biggest electricity provider Eskom opened books on a 10 year dollar deal on Tuesday. Initial price thoughts offered a generous concession over the company’s outstanding bonds and those of the sovereign, but debt bankers were not surprised at the high starting point.

Banque Centrale de Tunisie, the central bank of Tunisia, has widened price guidance to 100bp over yen swaps area for its 10 year Samurai bond guaranteed by the Japan Bank for International Co-operation. Initial price guidance had been released at 90bp-100bp over on Friday.

Banque Centrale de Tunisie, the central bank of Tunisia, has mandated banks to sell a 10 year Samurai bond guaranteed by the Japan Bank for International Cooperation, with pricing expected next week. Mexico has also announced guidance on a third tranche for its own Samurai deal, also expected next week.

First Bank of Nigeria is planning to bolster its tier two capital with a dollar bond and started a roadshow on Wednesday. The bank considered selling a bond last year but believes the timing is now right, and is hoping improved reporting standards for Nigerian companies will help put investors at ease, said a First Bank official.

The International Islamic Liquidity Management Corp has attracted criticism for delays in getting its programme of short dated sukuk underway. But IILM’s project must not be rushed if it is to achieve the success the Islamic market badly needs.