AFMI Weekly Insight June 8th 2018

8 June 2018


Headlines 

  • Mauritius-based SBM Holdings is looking to raise fresh capital through the sale of 2 bonds. The offer consists of a MUR 2 bn 10Y local currency bond paying a coupon of 5.75% and 7Y USD 50 million dollar-denominated bond paying a coupon of 4.75%. This sale will be used to finance the lender regional expansion strategy in Kenya. The sale opened on May 25th and will close on June 25th (http://allafrica.com)
  • Ghana has sold GHS 477.6 million worth of 10Y local currency bond this week yielding 17.5%. The issuance was open to foreign investors and attracted GHS 523.3 million worth of offers. Initial pricing guidance was ranging between 17.0% and 17.75%. Settlement is scheduled for June 11th (Source: Reuters)
  • Morocco will be soon issuing its first Sukuk worth MAD 1 bn (USD 105 million) as the regulatory framework governing Sukuk sales has been adopted recently. Last year, the Central Bank approved 5 requests to open Islamic finance institutions and allowed 3 commercial banks to sell Islamic products (Source: Reuters)
  • In South Africa, Eskom is planning to sell foreign debt in 2 months as investors sentiment has improved. Eskom could potentially raise between ZAR 15bn and ZAR 20bn (USD 1.6 bn). The company faced challenges to secure lending from banks and investors last year. Eskom is regularly cited as one of the main threats to creditworthiness. (sharenet.co.za)
  • In Kenya, the pension fund industry is looking to invest in green bonds as an option to diversify its revenue sources according to the Retirement Benefits Authority (RBA). The pension fund assets will hit USD 10 bn by the end of 2018. The Nairobi Stock Exchange and the Capital markets Authority have issued guidelines for green bonds. The government is planning to offer tax incentives to green bond investors. (Source: xinhuanet.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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