Africa Bonds

South Africa raised $1.25bn with its latest SEC registered bond on Thursday, amid a slew of negative headlines and what bankers described as a weak market backdrop.

Republic of Mozambique completed a successful debt exchange this week, but the deal heralds the swansong of African private placements, according to senior emerging market bankers. Virginia Furness reports.

The Republic of Mozambique’s new 2023 sovereign bonds, the result of a debt exchange of bonds sold by the state owned tuna fishing company Ematum, rallied around 20 points in the secondary market on Thursday, despite complaints over a ‘surprise’ loan.

Strong demand was expected to propel South Africa’s new 10 year note to a successful conclusion, with a 35bp-50bp concession tantalising investors before the US open, despite a political crisis in the country.

South Africa is looking to add another point to its dollar curve and has mandated banks for a 2026 bond amid attempts to impeach its president, Jacob Zuma.

When Mozambique was forced to disclose a near $800m bilateral agreement part way through the exchange offer for Ematum bonds, investors were angry. But even with that last hiccup, they’ve been gifted a bargain.

Republic of Mozambique’s new 2023 sovereign bonds, the result of a debt exchange process of Ematum bonds, are due to settle on Wednesday. But some investors are claiming the process has done lasting damage to the country's reputation in the capital markets.

Standard & Poor’s has downgraded Mozambique’s foreign currency rating after what it considers to be a distressed debt exchange of state-run tuna company Ematum’s 2020 notes.

The International Finance Corporation on Wednesday placed the first bond denominated in Namibian dollars from an issuer outside the country.

A slew of unusual CEEMEA issuers this week announced plans to meet with investors: Global Ports Investments, Kenya, Ahli Bank Qatar and Alternatifbank. Some are specified as non-deal meetings while others are focussed on specific deals.

Kenya has mandated three banks for a non-deal roadshow and is “expecting” questions around the rumours about alleged misuse of funds from its last Eurobond outing in 2014.

Holders of Mozambique’s “tuna bonds” have until close of business on Tuesday to accept a restructuring proposal after an early bird deadline was extended.