Africa Bonds

Sappi, the Austrian-South African paper maker, on Thursday priced its €450m of senior secured bonds inside price guidance, into a high yield market with solid demand this week.

Pan-emerging markets telecoms and media group Millicom sold a $500m 10 year non-call five note on Tuesday, tightening pricing by 25bp from initial price thoughts despite another day of torrid secondary markets in Latin America.

Austrian-South African paper maker Sappi will begin on Wednesday in London the roadshow for its €450m of senior secured notes.

Struggling Afren is in talks with bondholders to restructure its Eurobonds due 2016. The company missed a coupon payment on its February 2016s earlier this month.

Ivory Coast paid a lower new issue premium than expected to re-open the sub-Saharan sovereign bond market this week, sparking debate on the implications for other African borrowers.

Ivory Coast bagged over $4bn of orders for its new Eurobond on Tuesday, with investors taking comfort in the amortising structure which is becoming a feature of the African sovereign market.

The Republic of Niger has signed an agreement with the Islamic Development of the Private Sector (ICD) to set up a CFA150bn ($259m) sukuk programme.

Ivory Coast is marketing its new 12 year amortising note at 6.875%, a level that offers around a 37.5bp new issue premium.

Angola may have progressed to printing bonds in the public market, but the lure of opaque African private placements will continue to tempt others.

Angola has mandated banks for its next Eurobond but found its options limited as three major EM houses revealed they cannot or will not lead its deals.

Ivory Coast is marketing a 12 year amortising note. After receiving $4.7bn in orders for its 2024s last year, it has shrugged off a history of defaults.

The Republic of Cameroon has picked Société Générale and Standard Chartered Bank to arrange a bond, which looks likely to be up to $1.5bn. The bond would be Cameroon’s debut.