Africa Bonds

Outflows from emerging market portfolios since the August unrest are edging ever closer to the volumes seem during the Taper Tantrum of 2013.

BNP Paribas has walked away from a African sovereign bond mandate because of compliance issues. The bond, for Angola, is expected to have a size of at least $1bn.

BNP Paribas has been forced to return another bond mandate in the emerging markets because of compliance issues.

A week of equity market madness has left many Middle East and African bonds anywhere from 20bp to over 100bp wider since Monday, and dashed hopes of a rousing restart to CEEMEA supply come September. But for the Middle East, at least, debt bankers are looking forward to a bumper 2016.

AngloGold Ashanti is offering to purchase for cash up to $810m of its $1.25bn 8.5% 2020s, surprising some analysts who had been expecting the company to wait until the call date on the notes next year to repurchase the bonds.

Plunging Middle East stock markets have yanked bond spreads wider in their wake and raised doubts about the chance of a strong CEEMEA restart in September.

There aren’t many corporate insolvencies that would make a good movie. But any scriptwriters out there wanting to emulate the success of the Enron film should read our coverage of Afren this week.

Africa Finance Corporation, a pan-African multilateral development finance institution, has placed its inaugural MTN, following demand from a Southeast Asian buyer.

Ukraine’s sovereign debt restructuring, Argentinian primary elections and a potential Turkish coalition government are keeping debt bankers alert while the primary bond market takes its summer break.

Once the wild west of finance, emerging markets had dodginess and defaults aplenty. Now ethical investors want socially responsible investments. But if SRI criteria are too strict there will be nothing to buy, writes Steven Gilmore.

Zambia has printed its $1.25bn bond with a yield higher than any other outstanding African sovereign bond, as investors have this year punished the country for falling copper prices, a weak kwacha and a gaping budget deficit.

Those watching Zambia bonds might think that the $1.25bn deal this week yielding 9.375% demonstrates a borrower on the ropes considering in 2012 it paid a coupon of 5.375% for its debut bond. In fact, this is a borrower showing smarts when the rest of the CEEMEA gang appear to have bottled it.