Africa

Emerging market borrowers are flocking to the primary bond markets as ever more participants predict the US Federal Reserve will begin tapering its monetary stimulus, something that traditionally rings loud alarm bells for the asset class.

South African bank Investec is inviting Asian lenders to join a $450m sustainability-linked loan that is being syndicated globally.

Two emerging market bank issuers, Emirates NBD Bank and Absa Group, launched additional tier one bonds on Thursday, as the popularity of the bank capital tool grows.

Two emerging market bank issuers, Emirates NBD Bank and Absa Group, launched additional tier one bonds on Thursday, as the popularity of the bank capital tool grows.

Ethiopia has been hit with another downgrade by Moody’s, as a lack of clarity over its request to use the G20 Common Framework for debt restructuring clouds its market prospects. The outlook for sub-Saharan African financing remains rocky, as criticisms linger over the funding on offer.

South African lender Absa has mandated banks for an additional tier one dollar offering. Absa is the latest domestic bank to enter international debt markets despite the absence of the sovereign.

The IMF and Zambia have reached a "broad agreement" on a reform agenda for Africa’s first sovereign defaulter of the pandemic era. That will serve as a prelude to securing a new credit facility from the Fund and pleased investors, who noted that Zambia's bonds have made gains in recent weeks.

The number of emerging market syndicated loans is in decline for the fourth year in a row, according to Dealogic data. Bankers' outlooks for the rest of the year err on the pessimistic side, with the fallout from the pandemic being the main concern.

African Export-Import Bank launched a dual tranche dollar bond on Monday morning, with orders exceeding $3bn by midday. Emerging market bank issuers have been especially active in recent month thanks to attractive credit conditions.

South African investment company Remgro has reduced its stake in FirstRand, one of the country’s largest financial services groups, via an accelerated bookbuild.

The Singapore-incorporated global energy company Puma Energy has bounced back after a planned bond issuance last year failed to materialise, raising $590m in the loan market. Sources say the company’s change of management and reorganisation brought a “sense of relief”.

As its debt-to-GDP ratio inflates and its public finances come under pressure, some have wondered if Tunisia will succumb to a debt restructuring process. But the governor of the Central Bank of Tunisia, Marouane El Abassi, told GlobalCapital that the country is intent on securing new IMF funding as a prerequisite to entering capital markets.