Africa

Mozambique did not make a $60m coupon payment on its 2023 sovereign bonds due on Wednesday, and as it entered the subsequent grace period, creditors say there is “zero chance of the payment happening”.

Arab Republic of Egypt’s roadshow schedule next week is packed out, suggesting ample interest in the sovereign’s slowly improving story as it nears its first bond sale in two years, according to bankers on the deal.

Egypt is entering the final stages of preparation for its planned bond issue and will meet investors in Dubai next week, leading to suggestions that the sovereign will issue in sukuk format.

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Loan bankers have been waiting on tenterhooks for Kenya to reveal a mandate for deals totalling as much as $1bn, with the country’s government having originally been set to make the announcement this week.

Turkish bank, Albaraka Turk is hoping to update its old-style tier two sukuk debt to make it eligible as capital under Basel III and has asked investors to approve the inclusion of a point of non-viability (PONV) clause.

Syndication of the acquisition financing loans for Lonza and Sibanye Gold is expected to begin soon, as loans bankers begin 2017 in an optimistic mood.

Egyptian investment bank EFG Hermes is expanding its frontier markets division, and has appointed a new CEO who joins from Exotix Africa LLP.

The global rise in dollar funding, combined with political upheaval and the heavy depreciation of the lira are destroying some of the historically borrower-friendly terms available in the Turkish loan market. Elly Whittaker reports.

While some cash-strapped borrowers in Africa will bite the bullet and pay up to access international bond markets in 2017, others will have to return to the loan market for support. Virginia Furness and Elly Whittaker report.

Shares in Life Healthcare, one of South Africa’s leading private hospital operators, rose 1.5% on Tuesday after it said it would raise R10.7bn ($756m) in a rights issue to reduce its leverage after buying Alliance Medical Group, the UK provider of diagnostic imaging services.

In this weekly round-up, the US Federal Reserve interest rate hike is pushing the RMB even lower against the dollar, a fresh batch of free trade zones could be approved for an early 2017 launch, and Tunisia’s central bank is looking at a Panda bond deal. Plus, a recap of our coverage.