Issue 21: April 2019
For its second Newsletter of 2019, AFMI thought it would be appropriate to focus on African Eurobonds, now a $100 billion asset class.
Gregory Smith covers frontier and emerging market debt strategy for fixed income investors, with a focus on Africa, the CIS and the Middle East. He has a PhD in quantitative economics and expertise assessing political and market risk. His research combines macroeconomic and market technical analysis, with insights from 15 years’ living in, and working on, frontier and emerging economies. He is upbeat about the African countries he has lived in and visited. Most recently, he was a Senior Economist at the World Bank from 2012 and he began his career on the Overseas Development Institute’s Fellowship Scheme, working as an economist in the Ugandan Ministry of Finance.
“AFMI - Your gateway to Africa’s bond markets.”
By Gregory Smith, PhD
The landscape for African sovereign debt has changed rapidly since the global financial crisis. As lower global interest rates accelerated the search for yield, African governments borrowed from a wider...
Bond Market News Summaries
The African Development Bank Launches Eur 1 Billion 0.50 Percent 10-Year Global Benchmark Due 21 March 2029
The African Development Bank, rated Aaa/AAA/AAA by Moody's/S&P/Fitch, has successfully priced a EUR 1 billion 10-year Global Benchmark.
AAA Initiative To Fight Climate Change Impacts
The African Agriculture Adaptation Initiative (AAA Initiative) aims to reduce the vulnerability of African agriculture to climate change. It is distinguished by a pragmatic approach oriented towards the promotion of projects with high potential for the benefit of the African peoples and the financing of priority projects likely to fight against the impacts of climate change on agriculture in Africa while ensuring the food security of all the Africans.
Modern Monetary Realism
Kenneth Rogoff's criticism of Modern Monetary Theory assumes that MMT advocates don't care about budget deficits or the independence of the US Federal Reserve. But these assumptions are wide of the mark, and Rogoff himself sometimes undermines his own arguments.
African capital markets continue steady development
2018 saw a continuation of what has become a consistent theme of improvement in Africa’s capital markets, writes Hari Chaitanya, Head Investor Services Product Management, Transactional Products and Services, Standard Bank.
The African Development Bank (AfDB) and the African Securities Exchange Association (ASEA) organize “CAPITAL MARKET STAKEHOLDERS ROUNDTABLE” on the Africa Exchanges Linkage Project (AELP) being held on 24 April 2019 in Abidjan, Cote d’Ivoire.
The AELP is a capital markets integration project jointly initiated by the AfDB and the ASEA to enable seamless cross-border investment flows via pan-African securities trading. The first phase of the AELP Project will link seven stock exchanges covering fourteen countries. The Roundtable will be held on Wednesday, 24 April 2019 at the African Development Bank CCIA Offices in Abidjan, Cote D’Ivoire.
This project will help to build a market with more than USD 1trillion market capitalization.
ADBF Dividend declaration
The Board of Directors of African Domestic Bond Fund has declared for the financial year ending 30th June, 2019 a dividend of USD 0.58 per share to all shareholders registered at the close of business on 12th April, 2019. Payment thereof will be effected on or about 30th April, 2019. Consequently, the shares of the company will be quoted cum dividend until 09th April, 2019 and ex dividend as from 10th April, 2019.