Africa

Loan bankers in South Africa are pining for more deals, to curb the compression of margins as the ranks of lenders to the region are swelled by money from the Middle East and Asia.

Mozambique’s debt crisis is the latest financial market hot potato to be passed around by its stakeholders with a series of statements that would not look out of place in an election campaign. But with the IMF in the country and Mozambique’s future ability to pay looking ever more likely, it is time to reach an agreement, restructure and move on.

Bankers were calling the end of the dream run in emerging market bonds on Friday after Liquid Telecom was unable to tighten pricing or meet the $600m size target for its debut note on Thursday.

Debut issuer Liquid Telecom had the sole focus of the CEEMEA primary bond market this week with bankers on the deal hoping that the combination of high yield and low duration will tick the right boxes for investors as rates continue to tick up.

Pan-African fibre cable company Liquid Telecom is expected to come to the market with a $600m five non-call three year trade this week, bolstered by sharply improving sentiment towards sub-Saharan Africa credit.

Bondholders and creditors remain at loggerheads over the restructuring of Mozambique’s debt following the publication of an independent audit of the country’s debt by risk assessment firm Kroll.

Nigeria last week priced the first ever SEC-registered diaspora bond, raising $300m from a novel funding source made up of Nigerian expatriates. And continuing its bid to diversify its funding kit, the sovereign has now turned its sights to a naira denominated sukuk.

Naspers returned to the eurobond market after a two year absence on Thursday, releasing initial price thoughts for a new dollar benchmark.

Standard Bank is planning to launch a $750m syndicated loan, and hopes to drum up enough interest to enlarge it to $1.25bn.

For emerging market bond investors, every crisis is an opportunity as inflows into the asset class continue to compress yields. Russia, commodity exporters and Mozambique are in focus this week.

Ghana Cocoa Board held a successful roadshow in London on Friday for its annual cocoa harvest loan financing, according to a banker on the deal.

Boutique banking firm MetZurich has hired two bankers from Investec who left the firm earlier this year when the bank effectively closed its emerging markets business.