Africa Bonds

Even as South Africa and Halkbank prove that idiosyncratic risks are ever present in in emerging market bonds, conditions remain beyond syndicate bankers wildest dreams. That is good news for the bulging pipeline.

The Treasury of South Africa has taken to Twitter to save its investment grade status. But adopting a Donald Trump approach to global communication, while passing responsibility for its credit rating to its citizens, does nothing to help South Africa’s credibility.

South Africa’s Treasury has urged the country's citizens to help the government protect its investment grade (IG) status after S&P placed the sovereign on negative watch on Monday.

South Africa’s respected finance minister Pravin Gordhan was sacked on Thursday in a late night cabinet shuffle in which president Jacob Zuma dismissed of 10 ministers. The firing dismayed emerging markets experts but bond spread widening was contained despite bleak predictions for the country's economy.

Nigeria returned to re-open its $1bn 2032s to raise an additional $500m on Wednesday. The trade was a no-brainer, said EM bankers, and a saving grace after the issuer paid up for its February trade.

South African diamond mining company Petra Diamonds has picked lead managers for a dollar roadshow as the company attempts to optimise its debt liabilities.

Emerging market borrowers showed no regard for the start of the UK's official departure from the EU on Wednesday, opening books on four deals as prime minister Teresa May formally triggered Article 50 of the Lisbon Treaty.

Nigeria reopened its 2032s to raise an additional $500m on Wednesday, after making a successful foray into the international markets in February.

While global equities appear to be tanking, emerging market bonds are once again on fire with inflows supporting propping up what seems a never ending bid, but as ever, idiosyncratic risks are playing a bum note on some deals.

South Africa will meet investors in London and the US next week after announcing plans to borrow up to $2bn in the international markets this year.

First Quantum Minerals raised $2.2bn for refinancing purposes on Thursday, in what was said to be the biggest corporate high yield bond issue from the CEEMEA region ever - though it was the same size as a VimpelCom deal in 2011.

A bold £2bn mandatorily exchangeable bond issue for Anil Agarwal, founder and chairman of Vedanta Resources, captured global headlines on Wednesday and Thursday as he used it to buy a stake of about 12% in Anglo American, the mining group.