Africa

Payment of the overdue coupon and principal on the Republic of Congo’s $478m 2029s has sparked a rally in the sovereign’s bonds, but an investor said he was still uncertain whether the default was the result of an administrative error or symptomatic of a deeper problem with the country’s finances.

Nigeria sent out a request for proposals on Monday for a $1bn bond and has asked for responses by September 19.

The usage of renminbi in Africa has long been talked up given China’s status as the continent’s largest trading partner. Developments over the past couple of years have been slow, however, though there are now signs of activity with several African nations visiting Hong Kong in November to learn more about RMB reserves management.

Ascendis Health, the South African manufacturer of diet supplements, garden pesticides and medical equipment, has raised R1.2bn ($83m) through an oversubscribed rights issue that will enable it to complete two European acquisitions.

South Africa's Steinhoff is lining up $3.8bn in loans to buy bedding retailer Mattress Firm. The acquisition will give the retailer a foothold in the US consumer market.

African Export-Import Bank has appointed a new director for syndications, after hiring another senior loan syndication banker earlier this summer.

Ethos Capital, a permanent capital vehicle belonging to Ethos Private Equity, one of the largest private equity companies in sub-Saharan Africa, had a bumpy ride on its first day of trading on the Johannesburg stock exchange.

Republic of the Congo’s bonds dropped four cash points since Tuesday as all three ratings agencies downgraded the country this week. The downgrades follow the sovereign's default last week on a principal and coupon payment for its only international bond.

Investor appetite for African risk seems to have found its upper limit as even the EM bulls would not stretch to buying Ghanaian sovereign risk at the asking price on Thursday, writes Virginia Furness.

Republic of Ghana postponed its dollar bond issuance on Thursday after pricing moved against the issuer. It will proceed with a $100m buy-back of its 2017s but there is confusion about the outcome of a parliamentary vote on Tuesday.

Public sector dollar flow picked up on Wednesday after a quiet start to the week, as World Bank brought a four year benchmark and Tunisia sold a bond backed by the US government.

Egypt published a request for proposals for a new dollar bond on Wednesday as it works towards an agreement with the International Monetary Fund.