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Africa

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Observers have questioned why the country is issuing debt at this price
The seven year dollar bond's yield will likely be one of the highest in CEEMEA in the last few years
The familiar problem of inter-creditor opacity has also reappeared
Company in 'no doubt' a public trade would have delivered better pricing
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  • Having used the proceeds of its recent landmark sukuk deal for pre-funding its 2015 borrowing requirement, South Africa is only planning to issue $1bn in the international debt capital markets next year.
  • Nigeria is not planning to tap the international debt capital markets in 2015, but its next conventional dollar bond will likely be a 30 year and the country is also considering other markets such as Asian currencies and sukuk, Abraham Nwankwo, director general of the country’s debt management office told GlobalCapital.
  • Banks are receiving more and more reverse enquiries for MTNs and the smaller sizes and potentially less onerous documentation would suit many African issuers better than benchmark funding at this stage. The combination of these factors means that African MTN issuance is set to boom in the next six to 12 months, said Matt Duggan, a syndicate official at Absa/Barclays in Johannesburg.
  • Nigeria is not planning to tap the international debt capital markets in 2015, but its next conventional dollar bond will likely be a 30 year and the country is also considering other markets such as Asian currencies and sukuk, Abraham Nwankwo, director general of the country’s debt management office told GlobalCapital.
  • Having used the proceeds of its recent landmark sukuk deal for pre-funding its 2015 borrowing requirement, South Africa is only planning to issue $1bn in the international debt capital markets next year.
  • Lagos-based Zenith Bank launched an international syndicated loan on Thursday, extending a wave of loans for Nigerian borrowers.