Africa

Emerging market investors, starved of paper so far this year, have suddenly been flooded with interesting credits, and as Egypt’s blowout trade shows, they were ready for it.

Egypt opened books on its triple tranche dollar bond on Tuesday amid a swell of positive sentiment towards the country following recent comments by the IMF noting high satisfaction with its progress under its extended fund facility.

Shares in Life Healthcare Group Holdings, one of South Africa’s largest private hospital operators, closed 2.5% higher on Monday after it said late on Friday that its rights issue would be R1.7bn ($130m) smaller than planned.

The African loan market has hit 2017 on the front foot, with bankers heralding the support shown for Kenya and Sibanye deals as testament to gathering confidence in the region — but only for the right credits.

Kenya has mandated four banks to arrange internationally syndicated loans of as much as $800m, ending a restless wait for competing lenders.

Sibanye Gold, the South African gold producer, has set a date for bank commitments as it targets a quick turnaround on a loan backing its acquisition of US palladium miner Stillwater.

Industrial and Commercial Bank of China has bolstered its loan syndication and sales effort in London with a hire as the bank looks to establish a stronger foothold in the Europe, Middle East and Africa market.

Mozambique did not make a $60m coupon payment on its 2023 sovereign bonds due on Wednesday, and as it entered the subsequent grace period, creditors say there is “zero chance of the payment happening”.

Arab Republic of Egypt’s roadshow schedule next week is packed out, suggesting ample interest in the sovereign’s slowly improving story as it nears its first bond sale in two years, according to bankers on the deal.

Egypt is entering the final stages of preparation for its planned bond issue and will meet investors in Dubai next week, leading to suggestions that the sovereign will issue in sukuk format.

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Loan bankers have been waiting on tenterhooks for Kenya to reveal a mandate for deals totalling as much as $1bn, with the country’s government having originally been set to make the announcement this week.