Africa

Rating: Ba3/B+

South Africa’s Nedbank signed a $450m syndicated loan in an oversubscribed deal on Tuesday, adding to the rising trend of emerging markets borrowers turning to Asian banks for capital.

Senegal was fully rewarded for embarking on an extensive roadshow with a blowout trade on May 16, which not only repriced its own curve, but helped to reduce the borrowing costs of its peers.

Emerging markets bond bankers can think of nothing to derail the ongoing bull-run and while this might point to hubris, this week’s trades have given no indication of fatigue.

Books had reached $4bn on Tuesday before the US market opened for Senegal’s latest dollar outing, an amortising note maturing in 2033. Bankers and investors away from the mandate said they did not envy those dealing with the allocation process.

Senegal has launched its 2033 amortising note to raise $1.1bn after books reached $7.7bn at 8:30am New York time on Tuesday.

Kenya’s $500m loan from development financial institutions (DFIs) will be syndicated six months from its signing date, to avoid clashing with the country's commercial loan of $1bn from international banks, according to one of the bankers on the deal.

Afreximbank’s second syndicated loan this year is expected to grow from the initial asking amount of $700m as banks pile in to join, according to bankers on the deal.

The price of oil provided a point of focus for emerging markets this week after a barrage of other macro events came and went without too much concern. Easing sales of Brent crude created a decent window for Senegal to bring its first dollar trade in almost three years.

New deals from the Middle East and Africa are beginning to flow as EM’s hot run gathers momentum. In the Gulf Cooperation Council, Saudi Electricity Co (Seco) and Oman Electricity Transmission are exploring dollar opportunities as Abu Dhabi Commercial Bank plots a comeback. Further south and west, Senegal has picked leads for a dollar comeback as the market awaits the results of Ivory Coast’s RFP.

Senegal will meet investors next week ahead of a potential return to the dollar market for the first time in nearly three years.

The International Finance Corp and fund manager Amundi have announced plans for a $2bn fund to buy green bonds issued by emerging market banks — one of the most promising moves yet to help the global interest in green bonds actually make a difference to the environment.