Africa

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.

Shares in Remgro, the South African investment company led by billionaire Johann Rupert, rose 1.5% on Monday morning after it completed its R9.3bn ($676m) rights offer to finance a possible acquisition of SABMiller’s stake in Distell Group, the maker of Amarula liqueur.

Schroder European Real Estate Investment Trust, the Reit managed by the property arm of UK asset manager Schroders, has priced its second capital increase on the London and Johannesburg exchanges.

Dis-Chem Pharmacies, one of the leading South African pharmacy chains, is preparing an IPO on the Johannesburg Stock Exchange to raise funds to expand its operations and reduce its debt.

While Access Bank safely landed its dollar Eurobond last week, the outlook for Nigerian banks seeking new loans is cloudy.

Fitch has removed Afreximbank from rating watch negative, partly because of its “excellent” risk mitigants, as the development bank continues to arrange a loan of at least $750m.

The Eastern and Southern African Trade and Development Bank (PTA) lowered the margin on the two year tranche of its $400m refinancing and added a three year clip for the first time.

IHS Nigeria printed the largest ever deal from an African sub-investment grade issuer on Wednesday, raising $800m with a five year non-call two. The deal is testimony to Africa’s improving infrastructure scene, and sets a strong tone for Access Bank, which finished roadshows this week.