Africa

Kosmos Energy hit screens for its planned dollar benchmark on Thursday, benefitting from the dovish tone of the US Federal Reserve’s meeting on Wednesday.

Ghana Cocoa Board has signed its first sustainability-linked loan facility, kick-starting this year’s environmental, social and governance financing in emerging markets. The deal emerges as a trio of global trade bodies have launched a set of standards to codify this fast-growing market segment, which some financiers are still trying to come to terms with. Mariam Meskin and Mike Turner report.

Ghana became the first Sub-Saharan African sovereign to access the bond market this year on Tuesday, printing tranches of dollar paper on Tuesday and receiving one of the largest order books ever for a bond from the region.

Some investors are beginning to fear that the rally in emerging markets is running out of rope. Threats to Chinese growth could carry over and damage the prospects of emerging markets economies, according to Jupiter Asset Management.

The Republic of Benin has opened books for its debut bond — a six year euro amortiser. Ghana is also expected to enter the market on Tuesday, following a roadshow to promote a dollar bond.

Rand Merchant Bank London has made a new addition to its Africa loan syndication team.

Nedbank is planning to tap the market for a new loan, the first of an expected parade of South African bank borrowers. While bankers still worry about aspects of lending into the country, including a potential ratings downgrade and political uncertainty, appetite remains strong.

European high yield investors are as eager to buy bonds as their investment grade counterparts — the difference is, while IG issuers have been pouring paper into the market, high yield has been in a drought. But that is at last starting to break.

The Ivory Coast is set to tap the loan market to raise long-term financing. Market spectators were confident about the sovereign's chances. Its currency peg against the euro has proved attractive to both investors and lenders in recent years.

The Republic of Ghana has picked banks for a bond deal and tender offer, preparing to become sub-Saharan Africa’s first sovereign issuer of the year. Benin is also believed to be eyeing a debut in the international bond market.

Sappi, the South African paper company, succeeded in issuing its €450m seven year non-call three year bond on Tuesday at a coupon that will save it money, compared with the bond it is replacing.

High yield bond issuance in Europe is perking up, with several deals being marketed or just about to be launched. Beginning its roadshow on Monday was Sappi, the South African paper company, which wants to issue €450m to replace an older bond; starting on Tuesday is French car parts group Faurecia, seeking €500m.