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Africa

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Busy EM week lines up in wake of Fed


EM debt investors had largely expected a debt treatment would be required
Undisclosed institutional shareholder sells stake in Wednesday evening ABB
The country is unlikely to issue new dollar bonds in the near future despite a big rally in yields
Underwriting left unused after deal is 33% oversubscribed
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  • Reports on Tuesday that Tanzania has postponed its debut Eurobond until the next fiscal year because of a delay in getting a risk assessment from Citi have been denied by bankers in London both at Citi and away from the bank.
  • Retail investors drove a long four year bond from African Bank to success on Monday, with the South African financial appealing to a market that has suffered scarce supply from high yielding credits in 2014.
  • The Republic of Kenya is in talks with international banks to refinance the $600m two year bullet loan it signed in May 2012.
  • South Africa's MAS Real Estate, a company which focuses on the UK, Germany and Switzerland, is set to raise around €100m equivalent from a private placement at the end of February that will help it pay for further acquisitions.
  • Total EM volumes are only marginally down on last year to date, at $71.3bn, despite secondary trading levels having been rocked by an emerging markets sell off over the last fortnight. The total volume of new EM paper sold is only $36bn lower than at this point in 2013, according to Dealogic data.
  • South African lender African Bank opened books on a long four year Swiss franc deal on Monday morning, becoming the first African issuer to borrow in the currency this year.