Kenya

Kenya will have its work cut out to reassure investors after Moody’s cut its credit rating by a notch on Tuesday. Rival bankers said the clash is poor planning, but the leads on Kenya’s upcoming roadshow said investors should be doing their own credit work, reopening the debate about the relevance of ratings agencies in emerging markets.

Kenya has mandated banks for its first Eurobond since 2014, and is looking to extend its curve by 24 years to join the handful of sub-Saharan African borrowers that have tapped the 30 year part of the curve.

Exotix Capital has brought on three new hires to its frontier markets research team ahead of the introduction of MiFID II.

Kenya’s largest power producer Kenya Electricity Generating Company (KenGen) is looking to raise $300m in the loan market, which the World Bank is providing a $180m guarantee for.

African countries are moving full steam ahead to develop their economies through Chinese-funded railway infrastructure, hoping faster growth will forestall concerns about the costs and their ability to pay it back.

Exotix Capital is adding three new analysts to its Nairobi office.

Gabon on Monday raised $200m with a reopening of its bonds maturing 2025 in a week that has also kept investors in African Eurobonds on their toes with a no-confidence vote in South Africa and presidential elections in Kenya.

African politics had the focus of EM bond investors on Wednesday morning with South Africa’s president Zuma surviving a no-confidence vote, and Kenya’s presidential vote looking like a victory for the incumbent, Uhuru Kenyatta. Africa has also provided this week’s only new issue, a $200m tap from the Gabon.

African agriculture conglomerate Export Trading Group (ETG) has approached the loan market for a borrowing of up to $100m.

Kenya’s $500m loan from development financial institutions (DFIs) will be syndicated six months from its signing date, to avoid clashing with the country's commercial loan of $1bn from international banks, according to one of the bankers on the deal.

Kenya has signed a $1bn loan, an increase on the initial launch amount, with around 20 banks, said a banker on the deal.

Kenya finally launched an $800m loan into syndication after the appearance of another deal for the government delayed the process.