Africa Bonds

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.

The Republic of Kenya has released initial price thoughts for a tap of its $500m 2019s and $1.5bn 2020s that equate to a 20bp new issue premium. The tap will be priced later on Tuesday.

The International Islamic Liquidity Management Corporation on Tuesday auctioned $590m of three month commercial paper style sukuk – increasing the amount of paper in circulation at reissue by $200m.

South Africa’s FirstRand bank was the latest in a long line of pulled deals from CEEMEA on Thursday when it pulled a five year dollar bond on Thursday after announcing initial price thoughts.