Africa

Nigeria has picked three banks to manage its first sovereign trade since July 2013.

Nigeria has picked three banks to manage its first sovereign trade since July 2013.

The longer dated tranche of African Export-Import Bank’s (Afreximbank’s) two and three year loan received the most commitments in general syndication even though it was the first time the borrower borrowed at such a long tenor.

Standard & Poor’s has surprised to the upside, revising Poland’s outlook to stable from negative while maintaining South Africa’s investment grade status last Friday. The latter decision prompted a 15bp-20bp rally in both South African sovereign and corporate debt.

Though Egypt is reeling from the central bank’s action to float its currency last month two Egyptian borrowers are in the market for hard currency loans this week, but unsecured corporate loans will be slower to come, said bankers.

The busy equity block trade action in Europe since the US election has continued into its third week, though market participants are beginning to brace for the outcome of the Italian referendum on Sunday.

Holders of South African assets face another nervous Friday waiting for a sovereign rating decision, this time from S&P.

The Egyptian subsidiary of Abu Dhabi telecoms firm Etisalat is raising a $278m loan described as having “UAE pricing” because — despite the currency risks involved in Egyptian loans — the deal is secured by the borrower’s offshore foreign currency revenues, according to bankers.

African Export-Import Bank (Afreximbank) signed a $872m loan this week at its lowest margin for a two year syndicated deal, according to two bankers on the deal. The borrower also increased the deal size from $600m in syndication.

MTN Zakhele, a black economic empowerment scheme, has unwound its position in MTN Group, the South African mobile telecoms company, through the first block trade in the company’s shares for six years.

South African assets were facing another week of uncertainty as reports emerged on Monday that ANC leaders were preparing a vote of no confidence against president Jacob Zuma and traders warned of the potential for a ratings downgrade on Friday.

The busy equity block trade action, widely predicted by ECM bankers when the US presidential election produced a bounce in share prices, has continued this week with a string of sales totalling over $1.5bn.