Africa

Ascendis Health, the South African maker of diet supplements, garden pesticides and medical equipment, has announced the final terms of its fully underwritten R1.2bn ($83m) rights issue.

South African state-owned electricity firm Eskom has signed $1.34bn of loans, arranged by African Development Bank. The financing includes what four bankers said was the largest ever ‘B’ loan tranche.

The former head of loan syndication at African Development Bank has left for a role at a developmental financial institution in Cairo.

It was a rough day for stocks on Wednesday, but a great day for equity capital markets, with two convertible bonds launched and priced — the first since the UK’s vote to quit the European Union was revealed on June 24. They came on top of a roaring reception for Melrose Industries’ announcement of a £1.7bn rights issue for an acquisition in the US.

African Bank is gathering responses this week for a two tier buy-back of its outstanding dollar and Swiss franc debt in a bid to reduce its interest expense. The bank was bailed out by the Reserve Bank of South Afica in April.

Two South African rights issues are under way - one from a position of strength and one to deal with weakness - as the Johannesburg Stock Exchange rallies after the shock of Brexit last Friday.

Sub-Saharan Africa’s credit markets are benefiting from Britain’s decision to leave the EU as well as a more dovish stance from the US Federal Reserve, with bonds rallying to new lows, according to EM specialists.

Kenya Power and Lighting Company signed its $500m loan refinancing last week after extending the deal time to bring in more lenders.

PTA Bank, the African development finance institution, has signed a $340m three year loan largely from Chinese lenders.

South African investment firm Brait has signed new four year debt facilities as it seeks further potential acquisitions.

Ghana Cocoa Board (Cocobod) has completed senior syndication of its $1.8bn trade finance loan and will pay a few basis points more than last year’s deal to reflect harsher market conditions.

Johannesburg-listed drug manufacturer Aspen Pharmacare completed arranging €3bn-equivalent of loans on Wednesday. The multicurrency deal was more than twice oversubscribed in the euro tranche.