Africa

Last year was a record in terms of number of downgrades of emerging market sovereigns, with another four added this year — Turkey, Mozambique, El Salvador and Costa Rica. But Société Générale on Friday became the latest firm to criticise the ratings agencies for their pessimism.

Tunisia’s first Eurobond since 2005 demonstrated a firm show of support for a borrower which acknowledges it still has many issues to address – social, political and economic. But despite the deal’s success, Finance Minister Lamia Zribi said that Tunisia is keen to issue aid-backed bonds in future, in order to keep costs down.

Fitch’s downgrade of Tunisia’s credit rating was based on out-of-date information and negatively impacted the sovereign’s recent Eurobond trade, Lamia Zribi, Tunisia’s finance minister told GlobalCapital.

Even heavy indications from US Federal Reserve chair Janet Yellen the central bank will raise interest rates at its next meeting were not enough to derail the strong primary market in emerging market bonds.

Investors are soon to be treated to the first African corporate bond of the year as Helios Towers Africa hits the road for a five year non-call two deal.

Nomura has appointed two to its emerging markets sales team as it attempts to grow its business.

Tunisia returned to euros for the first time since 2005 on Friday but the €800m deal was by no means a blow out and the leads were unable to move pricing as the borrower made a play for new investors.

Tunisia has set the yield on its seven year euro bond issue on Friday morning at 5.75%, unchanged from initial price thoughts.

Despite lingering concerns about its foreign exchange rate regime, Nigeria’s return to the bond market drew an impressive $7.8bn book. So insatiable was demand that the deal dragged the whole sub-Saharan Africa market tighter in secondaries paving the way for some much missed supply from the sector, writes Virginia Furness.

International banks want quick answers from the Kenyan government on the status of its loan from Eastern and Southern African Trade and Development Bank (PTA Bank), which has threatened their bigger syndication for the sovereign just as the mandate is being finalised.

Nigeria’s 15 year bondlooked to be going strongly on Thursday, with investors piling $4.5bn of orders into the book by lunchtime.

Tunisia has opted for a two day execution strategy and is collecting indications of interest for its first euro-denominated trade since 2005, with an aim of printing the deal on Friday.