Africa Bonds

Higher oil prices, a new governing regime and an agreement with the International Monetary Fund are all expected to fire up demand for the Republic of Angola’s first Eurobond since 2015, though there is a question mark over how receptive the market will be for long dated debt.

South Africa’s largest real estate investment trust (Reit) Growthpoint raised $425m on Tuesday.

Higher oil prices, a new governing regime and an agreement with the International Monetary Fund are all expected to boost demand for the Republic of Angola’s first Eurobond since 2015, though there is a question mark over how receptive the market will be for long dated debt.

Growthpoint International opened books on its new dollar bond at 6% area on Tuesday morning. The issuer has picked a five year dollar bond after postponing a euro trade last year.

South Africa’s Growthpoint has concluded its final investor meetings and is expected to open books on a five year dollar bond on Tuesday. The issuer had been considering both euros and dollars after being forced to postpone a deal in the single currency last year.

South Africa is already bearing the fruits of Cyril Ramaphosa’s two month tenure as president. Renewed buoyancy is fuelling business confidence, driving down asset prices, and supporting a strong pipeline of capital markets activity in both debt and equity, write Virginia Furness and Sam Kerr.

Barclays Africa Group made full use of the positive momentum that followed fellow South African bank FirstRand’s dollar tier two to price its own deal with a lower yield this week, despite investors initially asking for a pick up over FirstRand.

Barclays Africa Group made full use of the positive momentum that followed fellow South African bank FirstRand’s dollar tier two to price its own deal with a lower yield, despite investors initially asking for a pick up over FirstRand.

Barclays Africa was on track to make it two South African tier two bonds in a week on Wednesday, and began pricing by offering a pick-up to rival FirstRand.

The CEEMEA bond market has proved resilient to the asset price crippling effects of the latest US sanctions against Russia with little evidence contagion. A steady stream of new issues this week confirmed that it is business as usual in the bond markets.

South Africa’s FirstRand Bank issued the first Basel III compliant tier two bond from the country on Monday, as South Africa’s banks look to capitalise on improving sentiment towards the country to diversify away from a ready domestic market.

FirstRand Bank was on track to open the market for South African tier two issuance ahead of Barclays Africa, which is lining up a trade for later this week.