Africa

Republic of Senegal could well have timed to perfection its plans to issue a euro-denominated bond with EM investors calling this the “last chance” for EM borrowers to take advantage of extraordinarily low interest rates in the currency.

Eskom, the South African state electricity company, signed a R20bn ($1.7bn) syndicated loan on Wednesday, a day after S&P downgraded it.

Emerging market bonds have been buoyed by several positives in key markets this week including a cabinet reshuffle in South Africa that has seen the return of respected former finance minister Nhlanhla Nene, and the upgrade of Russia to investment grade by S&P.

Seplat Petroleum Development, a Nigerian oil and gas exploration and production company, is lining up its first international bond which will also be the first non-financial corporate bond from Africa this year.

Two South African corporates are in the market for syndicated loans amid South Africa’s cabinet reshuffle, after former president Jacob Zuma resigned earlier this month.

Republic of Senegal is planning to make its first funding foray into euros, following its fellow West African nation Cote d’Ivoire to fund in its natural currency.

Dubai's Mashreqbank is adding a deal for Nigeria's Access Bank to the string of loans to African financial institutions it has arranged.

Kenya printed a $2bn dual tranche bond this week from a combined book of $14bn as investors continued to pile into emerging market credits they favour.

Kenya looked to have adopted the same pricing strategy as its African peers on Wednesday, opening books on a dual tranche 2028 and 2048 bond with a chunky concession, much like Egypt and Nigeria last week.

The new bond issues may be flowing in emerging markets, but after weeks of volatility, the era of easy execution is over.

Emerging market investors were optimistic after Cyril Ramaphosa was voted in as president of South Africa on Thursday, following the long awaited resignation of Jacob Zuma, though the administration has its work cut out to revive the country’s anaemic economy.

The Federal Republic of Nigeria has released price guidance for its dual tranche bond that rival syndicate bankers and investors are calling “exceptionally” cheap.