South Africa

South Africa’s Cell C is expected to print its debut dollar bond on Wednesday, a secured note which will be appeal more to high yield buyers than emerging markets investors, according to an EM buy-side analyst.

This week has seen the completion of the largest UK IPO since Worldpay, despite a cautious mood gripping investors following a string of failed IPOs in Europe. A significant M&A driven rights offer and a bold convertible bond from a prominent shopping centre group have also reached successful conclusions.

Shares in Remgro, the South African investment company led by billionaire Johann Rupert, rose 1.5% on Monday morning after it completed its R9.3bn ($676m) rights offer to finance a possible acquisition of SABMiller’s stake in Distell Group, the maker of Amarula liqueur.

Schroder European Real Estate Investment Trust, the Reit managed by the property arm of UK asset manager Schroders, has priced its second capital increase on the London and Johannesburg exchanges.

Dis-Chem Pharmacies, one of the leading South African pharmacy chains, is preparing an IPO on the Johannesburg Stock Exchange to raise funds to expand its operations and reduce its debt.

MTN Group, the South African telecoms company, priced $1bn of five and 10 year bonds on Wednesday in line with initial guidance that some investors said was generous.

South African telecoms company MTN finally emerged with a dual-tranche dollar deal on Wednesday morning more than three weeks after finishing investor meetings.

After a slow start to the week, emerging market investors were offered a smorgasbord of options as borrowers from four continents and across the credit spectrum launched bonds in dollars and euros.

There was a cheerful mood in European equity capital markets throughout September, despite clear risks of volatility on the horizon and the IPO of Telxius falling into difficulty. The health of the market was highlighted this week by the success of a €2.5bn capital raising by Steinhoff, the South African retail group.

After a turbulent summer, South Africa swept in for its biggest ever bond issue on Thursday, taking $3bn with a dual tranche 12 and 30 year bond. The deal was a yield hunters dream and proved that investors are willing to put aside concerns of an impending downgrade, and political infighting, for a decent return.

GlaxoSmithKline disposed of its remaining 6.2% stake in Aspen Pharmacare, one of Africa’s largest pharmaceuticals companies, through an accelerated book build launched on Wednesday evening in a deal that was said to be comfortably oversubscribed after a wall-crossing process.

South Africa has opened books on a dual tranche 2028 and 2046 dollar bond after a turbulent summer and while the generous starting price is likely to generate momentum in the book, fears of a downgrade overhang the transaction with one investor telling GlobalCapital he saw better value elsewhere.