Africa Bonds

Tunisia has picked banks for a 144A/Reg S conventional dollar deal and starts investor meetings on Friday. The lead manager line-up contains some of the same banks that were attached to a debut sukuk the sovereign had intended to launch in 2014. But that transaction — although still planned — has been delayed while Tunisia tweaks its sukuk legislation, said debt bankers.

Tunisia has picked banks for a 144A/Reg S conventional dollar deal and starts investor meetings on Friday. The lead manager line up contains some of the same banks that were attached to a debut sukuk the sovereign had intended to launch in 2014. But that transaction — although still planned — has been delayed while Tunisia tweaks its sukuk legislation, said debt bankers.

Makram Abboud is VTB Capital's chief executive officer, Middle East and Africa and vice-chairman, international. Dan Alderson spoke to him about how the bank is carving out its niche in these regions, which have become a focus for Western banks with the shut out of the Russian loan market in 2014. Abboud also discussed challenges and opportunities in the year ahead and the prospect of VTB issuing its first sukuk.

Investors are bemoaning proposed amendments to South Africa’s Banks Act, which grant regulators the power to amend a bank’s capital structure.

BNP Paribas declined the mandate for Thursday's Ethiopia bond for compliance reasons, according to three sources familiar with the situation. The exact reason for the French bank's refusal is unclear, but emerging market bankers in London say it is unlikely to indicate more widespread caution over the bond business, writes Francesca Young.

The African Development Bank has returned to the offshore South African rand bond market after 15 years away and is looking to enter the currency’s onshore market, as its typical forms of funding in the region have dried up.

BNP Paribas declined the mandate for Thursday's Ethiopia bond for compliance reasons, according to three sources familiar with the situation.

The CEEMEA and Latin America bond markets have made a slow start to December with no international bonds from either region yet printed. Instead all hopes rest on an African sovereign still on the road.

African Development Bank has sold its first international South African rand syndication since 1999 and may issue again in the currency before the year is out, GlobalCapital understands.

Emerging market bankers believe there is only around a fortnight left for CEEMEA borrowers to tap the market. But investors showed they were still keen active this week as two African sovereigns approached the market — Kenya printing a tap of the $2bn dual trancher it sold in June and Ethiopia announcing roadshow dates for a debut bond that bankers away from the deal said is likely to be a $1bn 10 year.

The International Finance Facility for Immunisation (IFFIm) has priced a $500m debut sukuk at just 15bp over three month Libor, the tight end of its earlier 15bp-17bp guidance range.

Kenya tapped its 2019 and 2024 bonds on Tuesday paying no premium, by some estimates, to its outstanding bonds and growing the longer dated deal to $2bn, the biggest single tranche from a sub-Saharan African borrower.