AFMI Weekly Insight June 22nd 2018

22 June 2018


Headlines 

  • In Kenya, investors kept off the 25Y bond that the Treasury put on sale until June 19. The KES 40 bn bond only attracted bids worth KES 10.1 bn with the Central Bank of Kenya only accepting KES 5.2 bn at 13.45%, in line with the stated coupon of 13.5%. Most investors prefer to stay out of the primary market at the moment fearing an upward yield curve adjustment in the short-term. 
    (Source: businessdailyafrica.com)
  • In Nigeria, according to the Debt Management Office (DMO), the federal government has spent NGN 643.6 bn on domestic debt servicing from January to March. According to the DMO, NGN 239.8 bn was spent on domestic debt servicing in January, NGN 144bn in February and NGN 259.7bn in March. In terms of instruments breakdown, NGN223.4 bn was interest on Nigeria Treasury Bills/Bonds while NGN 411.7 bn was interest on Federal Government Bonds 
    (Source: premiumtimesng.com)
  • Still in Nigeria, the Federal Government has offered NGN 60bn worth of bonds for subscription in its June 27 auction.  It will sell NGN 20bn of a 5Y re-opening maturing in April 2023 at 12.75%. It will also sell a 7Y re-opening bond to mature in March 2025 at 13.53% and another NGN 20 bn 10y re-opening at 13.98% maturing in February 2028.
    (Source: dailynigerian.com)
  • Fitch has affirmed Seychelles’ Long-Term Foreign Currency Issuer Default Rating at BB- with a stable outlook. The agency indicated that the fiscal and monetary policies have become more robust and coherent. Fitch also stated that strong governance and high GDP per capita are key strengths. However, Fitch identified the following weaknesses: the small size of the economy, vulnerability to external shocks and current account deficits. 
    (Source: cbonds.com)
  • Mali is going to issue XOF 35 BN worth of bonds with a coupon of 6.25%, according to Agence UMOA-Titres. This will be a 5Y note. The bond will be offered to investors from the 8 countries of the WAEMU zone, with a face value of XOF 10,000 per bond.
    (Source: malinet.net)

Currencies

Source: Bloomberg®

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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