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Africa

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  • The UK’s Gemcorp has given a $250m loan to the Zimbabwe sovereign to help the country buy essential goods, as low dollar liquidity puts the squeeze on importers.
  • The flotation of Cipla Quality Chemical Industries (CiplaQCIL) on the Ugandan stock exchange could persuade fellow African issuers to follow suit.
  • African Export-Import Bank (Afreximbank) has for the first time turned exclusively to the Korean banking market to sign a $150m club loan.
  • The African Development Bank has become the first supranational bank to use a securitization sold to private investors to free up balance sheet capacity. The deal, four years in the making, demonstrates a new technique that could expand development banks’ firepower to promote development.
  • The African Development Bank’s $1bn synthetic securitization is not its first risk transfer transaction, and will not be its last. The bank has marked itself out as a leader in this sphere, though the effort to get such techniques to work is also highly collaborative.
  • The European Commission has unveiled a portfolio of financial guarantee transactions it is doing to support development in Africa and regions bordering the EU. Among them are two programmes conducted by the African Development Bank, including its new synthetic securitisation.