International lenders back Egypt debt, domestic yields climb

Egypt is chasing its short-term domestic market to fund ballooning Government deficits, but seems to be preparing for a new Eurobond issue to replace $1 bn in 8.75% Eurobonds maturing in July. US President Barack Obama’s May guarantee on $1 billion of Egyptian debt could cut the country’s borrowing costs by $100 mn.

Wind of change blows world markets, African stock exchanges unruffled

I have the honour to be published on the opinions section of the Royal African Society website and the article can be seen along with their excellent blogs I also reprint the article, which is meant to spark debate, and I welcome your comments – is it time for change and what is the way forward?

Nigerian bank’s $0.5 bn high yield eurobond

Nigeria’s Guaranty Trust Bank is coming to the market with a $500 million Eurobond, which may roll out into a $2 billion offering. The bank is listed on the Nigerian and London Stock Exchanges.

Senegal’s $500m Eurobond offers good yield

Senegal has successfully re-priced its yield curve by issuing a more liquid 10-year $500 million Eurobond carrying a coupon of 8.75%. The bond was priced at 97.57 when it was bid on 6 May, the equivalent of a yield of 9.125%.

Sub-Sahara investment banking fees $157 mn for 3 months

Fee income from investment banking in sub-Saharan Africa more than doubled to US$157 million during Q1 of 2011, compared to same period in 2010. Of this $80 mn (51%) was earned on merger and acquisition (M&A) activity, according to a leaflet and press release from Reuters Deals Intelligence.

Bonds soar, cocoa prices fall as CI rebels advance fast

Rebels in Cote d’Ivoire made rapid advances towards Abidjan yesterday (30 March), where fighting could be fierce. Prices rallied yesterday on the €2.3 Eurobond and Bloomberg reported a 7% climb to 42.688 cents in the dollar nominal value, while cocoa prices fell $70.

Rebel advances in CI boost Eurobond prices

Rebel advances in Cote d’Ivoire are boosting the price of the country’s €2.3 bn Eurobond, which are in default since 1 Feb, in London trading. According to Bloomberg today (30 Mar), the advance boosted the dollar-denominated bonds to their highest in at least 2 months as they climbed 4.2% to 39.875 % of face value last night.

Foreign funds and SA bonds and equities

Flows into South African bonds turned positive in the last few days, although money is still being moved out of equities. For much of 2011 (year to date) investors had followed the global trend of less appetite for emerging markets and there have been outflows from South African bonds and equities after 2010 saw record inflows.

Top investment conference this week in London

Leading investors and institutions are to discuss transactions and trends in Africa’s capital markets during the Africa investor 2011 Analysts’ and Fund Managers’ Forum to be held in London. The one-day meeting will be held in association with Thomson Reuters, at their headquarters in London on 24 March.

Cote d’Ivoire defaults on $2.3bn Eurobonds

Cote d’Ivoire has formally reneged on $2.3 billion of Eurobonds, becoming the first nation to default since Jamaica in January 2010. The default comes after it was unable to pay $29 million of interest which had become due and after a 30-day grace period had expired. However, the market appears to have faith the crisis will eventually end.

Nigerian Stock Exchange Annual Review 2010

The Nigerian Stock Exchange reported on 19 January that a total volume of 93.3 billion shares valued at N797.6 billion (3.2% of gross domestic product) were traded in 2010, with volume down 9% and value up 16% compared to 2009 when 102.8 billion shares were traded, valued at N685.72 billion (2.9% of GDP).

Plans for Nigeria’s $500 mn Eurobond

Citigroup expects to see strong demand for Nigeria’s $500 million debut Eurobond despite volatility in global capital markets. It plans roadshow this week.

Kenya regulator cuts bond charges, banks still push for bond OTC market

Kenya’s Capital Markets Authority has cut the cost of trading bonds from 0.04% per cent (KSh400 for every KSh1 million transacted) to 0.035% (KSh350 for every KSh1 mn) in order to pass on the lower costs due to automated trading on the Nairobi Stock Exchange. Banks say they still want an Over-The-Counter market to trade bonds alongside the NSE.

Institutions react to Cote d’Ivoire crisis

Markets are reacting quickly to the news that Laurent Gbagbo was sworn in as president of Cote d’Ivoire on Saturday (4 Dec). The World Bank and African Development Bank on Sunday said in a joint statement: “The African Development Bank and the World Bank, longstanding multilateral development partners of Côte d’Ivoire, view with great concern and frustration the events unfolding in Côte d’Ivoire.”