Africa

South African Eurobonds rallied a half to three-quarters of a cash point this week after fraud charges against finance minister Pravin Gordhan were dropped on Monday. Now both the sovereign and FirstRand Bank are hitting the road.

Mozambique’s 2023 bond rose five cash points on Wednesday after a government official was reported to have said that principal reductions would not be imposed on creditors, but experts are sceptical and one said the comments could have been “lost in translation”.

October was the busiest month for CEEMEA borrowers on record, with $37.5bn of new bonds issued. Even if Saudi Arabia’s $17.5bn mega deal was not included, volumes were way above the five year average of $14bn. But as the US elections approach, primary issuance has wound down.

South Africa has announced a series of investor meetings that coincides with a half to three-quarters of a cash point rally of the country’s Eurobonds after fraud charges against finance minister Pravin Gordhan were dropped on Monday.

The IPO of Dis-Chem Pharmacies, the South African retail pharmacy group, was covered at its largest possible size two working days into the bookbuild, as the South African rand rallied on news that finance minister Pravin Gordhan will no longer face fraud charges.

The African Export-Import Bank has launched its new money loan into general syndication with 12 lead banks for three tranches of two and three years.

South African assets rallied on Monday after its National Prosecuting Authority (NPA) dropped fraud charges against embattled finance minister Pravin Gordhan, setting a stronger tone for FirstRand Bank to engage with investors next week.

Mozambique’s now infamous government 2023s sank to their lowest ever cash price this week, bottoming out at 57.5 cents as investors continue to digest the news that they will not be paid back in full. VTB Bank, one of the loan providers, has claimed to have been misled by the government.

Abu Dhabi airline Etihad Airways has launched a Schuldschein for €150m denominated in euros and dollars, the first ever for a Middle East borrower, according to one market participant.

South Africa’s Cell C is expected to print its debut dollar bond on Wednesday, a secured note which will be appeal more to high yield buyers than emerging markets investors, according to an EM buy-side analyst.

This week has seen the completion of the largest UK IPO since Worldpay, despite a cautious mood gripping investors following a string of failed IPOs in Europe. A significant M&A driven rights offer and a bold convertible bond from a prominent shopping centre group have also reached successful conclusions.

The finance minister of Mozambique met investors in London on Tuesday to discuss a debt restructuring and disclosed that it had “no capacity to pay” back investors.