AFMI Weekly Insight June 15th 2018

15 June 2018


Headlines 

  • In Kenya, the Treasury has issued a 25Y bond as it looks to lengthen the maturity profile of its debt. This is the longest domestic bond issued by the government since September 2014. It will go on sale until June 19 with a coupon of 13.4%. The Treasury is targeting KES 40bn. The average time to maturity for bonds was at 5 years at the beginning of but has fallen to just over 4 years in April 2018.
    (Source: businessdailyafrica.com)
  • Still in Kenya, bonds turnover rose 11.2% in May to KES 44.8 bn as investors re-inject excess funds in the secondary market since the Central Bank of Kenya limited its uptake in the primary market. Bonds trading has been higher this year with a turnover of KESD 232 bn in the 5 months to May, 21% higher than last year. 
    (Source: nation.co.ke)
  • In Nigeria, the oldest leasing firms C&I Leasing Plc has issued a 5Y senior secured bond, which was on offer between May 21 and June 4,2018. The company had a 133% subscription to their NGN 7bn bond. The company intends to use part of the proceeds to repay maturing bank loans and scale up its services in the oil and gas sector.
    (Source: thenerveafrica.com)
  • Still in Nigeria, the Securities and Exchange Commission (SEC) intends to come up with rules that will guide issuance of green bond in the country. The SEC is in the process of getting inputs rules from stakeholders and market participants and will soon release its rules. The SEC is also working with Climate Bonds Initiatives towards actualizing climate change solutions that will strengthen internal capacity. 
    (Source: nairametrics.com)
  • Moody’s has downgraded Gabon’s issuer and senior unsecured debt ratings to Caa1 from B3 and changed the outlook from negative to stable. The agency indicated that the rating action is motivated by the persisting government arrears to creditors and suppliers, which will generate liquidity pressures. The stable outlook reflects Moody’s perception that the challenging fiscal and liquidity positions will be balanced by continued IMF financial support as the country’s debt will remain sustainable according to the IMF framework.
    (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®

Bond Index chart

Bloomberg Commodity Index

Source:  Bloomberg®

Commodities chart
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