Africa

With African bond volumes set to hit an all-time high this year, it would be easy to interpret the record-breaking number as an indication that investors are set to stand by Africa as a storm hits EM. But that would be wrong — EM investors largely think that African bonds are going to tank, or at least struggle, it’s just that they are all betting on getting out first.

Grim trading in African bonds this year has not stopped DCM and syndicate bankers predicting that African Eurobond volumes will blast past historical records to hit a new high in 2018. With Angola forging ahead this week with a tap that broke a dollar hiatus of more than a month in the CEEMEA market, they look set to be proved right, writes Francesca Young.

More Nigerian banks are looking to come to the syndicated loan market late this quarter, with lenders fighting to win mandates.

South Africa’s Investec Bank has doubled the size from launch of its two year syndicated term loan to $600m, after a 'significant' oversubscription.

The Republic of Angola has tapped the $1.25bn 9.375% 2048s it sold in May for a further $500m, marking the first dollar bond printed in the CEEMEA market for over a month. The deal was anchored by reverse enquiry.

First Bank of Nigeria is buying back $300m of its outstanding subordinated bonds.

Benin is one step closer to issuing a planned Eurobond after Standard & Poor’s gave it a B+ foreign currency sovereign credit rating on Friday. The West African issuer had sent out a request for proposals (RFP) for a bond back in April.

Creditors to retailer Steinhoff have agreed to give the scandal-hit company an extra three weeks to provide a debt restructuring plan, two days after the company said it would not be able to hammer out a deal in time for the initial June 30 deadline.

Scandal-hit retailer Steinhoff International Holdings has asked its creditors for a three week extension to hammer out the final terms of a multi-billion euro debt restructuring.

Nigeria’s Indorama Eleme Fertilizer & Chemicals has taken $1bn in debt financing, in the second use of the International Finance Corporation’s Managed Co-Lending Portfolio Programme in a week.

Absa Bank and Rand Merchant Bank are selling a 2.9% stake in Shoprite, the South African food retailer, as part of a derivative transaction with Christo Wiese, chairman of Shoprite and former chairman of Steinhoff International.

The Islamic Development Bank has been meeting investors and banks in Europe to explore the possibility of launching its first public sukuk issue in euros. A labelled green sukuk might follow.