Africa Bonds

South Africa's Eskom is on track to price its first bond since 2013 and is talking a new 10 year at mid-7%. Investors have responded positively to the offer so far, despite the ongoing problems faced by the state-owned electricity provider, according to bankers.

Commerzbank is opening a representative office in Abidjan, the economic hub of Ivory Coast, and has appointed Konrad Engber as head of the five person team. He had previously been Commerzbank’s representative in Addis Ababa, Ethiopia, and Tripoli, Libya.

Afren, the Africa-focused oil exploration company listed on the London Stock Exchange, has avoided default on a $300m loan after obtaining a deferral from banks on the $50m amortisation payment that was due on Saturday January 31 for its Ebok debt facility.

Standard Bank has closed a sale of 60% of its markets business to Industrial and Commercial Bank of China, a deal which the bank will use to further “the group’s growth strategy in South Africa, and across the African continent.”

African sovereign sukuk issuance could grow in the next two years, Bank of London and the Middle East (BLME) believes. But other analysts predict only one or two Africa sovereigns will follow South Africa into the international sukuk market.

Egypt is preparing to follow Tunisia’s landmark return to the international bond market as investors shrug off conflict in Syria and the oil price’s collapse to regain appetite for Middle Eastern credits. Underscored by this week’s $1bn deal, confidence in the region has rebounded to levels last seen before the Arab Spring in 2011, writes Virginia Furness.

A strong reception to a 10 year Eurobond from Tunisia this week — its first conventional bond since the Arab Spring —is proof that the country is on the right path in terms of financial autonomy, according to bankers.

A strong reception to a 10 year Eurobond from Tunisia this week — its first conventional bond since the Arab Spring — marks a large step towards Tunisia’s political and economic rehabilitation, said emerging markets bankers.

The Republic of Tunisia is planning a five year dollar denominated sukuk in the third quarter of this year and is considering what assets to use, Hakim Ben Hammouda, the country’s finance minister, told GlobalCapital Emerging Markets.

A strong reception to a 10 year Eurobond from Tunisia this week — its first conventional bond since the Arab Spring — marks a large step towards Tunisia’s political and economic rehabilitation, said emerging markets bankers.

The Republic of Tunisia is planning a five year dollar denominated sukuk in the third quarter of this year and is considering what assets to use, Hakim Ben Hammouda, the country’s finance minister, told IFIS.

Republic of Tunisia made its standalone return to the capital markets on Tuesday with its first non-agency guaranteed bond since the Arab Spring.