Africa Bonds

Barclays shareholders are used to the share price plunging on results day, but Tuesday's 10% fall by noon was a lot worse than usual. The main shock of the first results since Jes Staley took over as chief executive in December was a 54% cut in the dividend for 2016 and 2017.

Reports that Barclays will exit its African operations, known locally as Absa, have left emerging market bond and loan bankers puzzling what future the firm has in the region — historically one of its strengths within CEEMEA — but it is thought it will leave the UK firm better capitalised.

Standard Bank has denied a Reuters news report on Tuesday it is ceasing business on the EM desk that focuses on high yield.

Markit is preparing to launch what it said will be the first tradable emerging markets interest rate swap index.

The Central Bank of Nigeria decided on Tuesday to leave its rates on hold but, despite concerns that that would create further difficulties for the economy, Nigeria’s Eurobonds rallied 30bp overnight as investors focused more on oil prices than policy decisions.

The Central Bank of Nigeria decided on Tuesday to leave its rates on hold, but despite concerns that this will plunge the economy into further difficulties, Nigeria’s Eurobonds rallied 30bp over-night as investors focus more on oil prices than policy decisions.

Markets opened with a more positive tone on Monday after comments from Saudi Arabia buoyed oil prices and the European Central Bank boosted confidence last week. But with many US bankers snowed in at home, EM issuers are holding back.

Emerging markets bankers were treated to a new name on Monday as Banque Ouest Africaine de Développement (BOAD) announced a roadshow for its debut bond.

Nigeria will have to pay a yield of over 9% to access the international markets as it plans its first Eurobond for three years, according to Exotix.

Crashing commodity prices and an increasingly intense focus on compliance and reputation has made launching international bonds in Africa much tougher over the past year. Many banks are wondering whether the risks are still worth the reward. Francesca Young reports.

Renaissance Capital has opened a new office in Cape Town, South Africa.

Most African sovereign bonds yield have spiked to double digits in the last week as the sell off in US high yield bonds and associated funds has hit the emerging markets.