Africa

Two pieces of the autumn IPO jigsaw have been revealed this so far this week by intention to float announcements. The market has also gained visibility on yet another deal by a UK closed-end investment fund.

South Africa has had a bumpy ride this summer with the sovereign downgrade and the introduction of a new controversial mining charter in June. Despite that, the loan market has proved its resilience.

Resilient Reit, the South African real estate investment trust, completed an accelerated capital increase on Tuesday morning that was tripled in size due to the strength of the demand.

South African gold mining company Harmony Gold signed a $350m loan, making it the first in its industry to take out a loan since a new mining charter was introduced in June.

Standard Bank of South Africa is looking to raise funding in what will be its first international markets deal for 10 years, according to sources.

Exotix Capital is adding three new analysts to its Nairobi office.

Angola’s ministry of finance has been given approval to issue up to $2bn of Eurobonds this year though concerns about the country’s rising debt servicing costs led S&P to downgrade it to B- on Friday.

South African mobile operator Cell C completed the restructuring of its debt this week, following a R16.4bn ($1.2bn) recapitalisation by new and existing shareholders.

Gabon on Monday raised $200m with a reopening of its bonds maturing 2025 in a week that has also kept investors in African Eurobonds on their toes with a no-confidence vote in South Africa and presidential elections in Kenya.

African politics had the focus of EM bond investors on Wednesday morning with South Africa’s president Zuma surviving a no-confidence vote, and Kenya’s presidential vote looking like a victory for the incumbent, Uhuru Kenyatta. Africa has also provided this week’s only new issue, a $200m tap from the Gabon.

Gabon on Monday placed a $200m reopening of its 2025s with no new issue premium in what bankers described as good trade all round.

Gabon reopened its 2025s on Monday morning to take advantage of a recent five cash point rally in its debt.