AFMI Weekly Insight April 6th 2018

6 April 2018


Headlines

  • The Kenya Pooled Water Fund is planning to issue a KES 1.5bn (USD 15mln) bond and to have it certified as a green bond, in order to finance Kenyan water utilities. This will be a 15-year instrument, issued during the second half of the year after securing regulatory approval. It will target Kenyan institutional investors. 
    (Source: reuters.com)
  • Fitch Ratings has affirmed Morocco's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook. The agency cited the continued macroeconomic stability, the improving public finances, net external debt declining as drivers of this rating action. 
    (Source: Ecofin Agency)
  • Ghana is considering issuing up to USD 2.5bn of foreign-currency denominated debt this year. Apart from the usual sale of USD debt, the country is also considering issuing Samurai (Japan), Panda(China) bonds and could also tap the Islamic bond market by issuing Sukuks. Ghana will use USD 1bn to meet its 2018 budget and the remainder to refinance dollar bonds.
    (Source: Bloomberg)
  • Egypt has started to meet with investors this week regarding a potential euro-denominated bond. Egypt is planning to issue notes with maturities of 8 and/or 12 years. The country has already raised USD 4bn through a triple tranche earlier this year. Last year, Egypt raised USD 7bn through Eurobonds.
    (Source: reuters.com)
  • Morocco's central bank left its monetary policy rate at 2.25 percent, citing a positive reaction of financial markets and institutions to the introduction of a more flexible exchange rate system in January along with an improving economy and moderate inflation.
    (Source: african-markets.com)

Currencies

Source: Bloomberg®

Currencies chart

AfDB/AFMI℠ Bloomberg® African Bond Index (ABABI) 25% Capped

The ABABI 25% Capped is a rule - based weighted composite index of local Sovereign Indices (South Africa, Egypt, Nigeria, Kenya, Namibia, Botswana, Ghana, and Zambia).

County percentage composition to the index is capped at 25%.

To be included in the index, a security must have at least 1 year remaining to maturity. Source: Bloomberg®

BADBC chart

Bloomberg Commodity Index

Source:  Bloomberg®

Commodities chart