AFMI Weekly Insight March 23rd 2018

23 March 2018


Headlines

  • Ivory Coast is selling 1.7 billion euros ($2.1 billion) of bonds in the biggest issuance of debt in the common currency from an African government.The West African nation is offering 850 million euros of 12-year notes paying 5.25 percent and a similar amount of 30-year securities with a coupon of 6.625 percent. Price guidance was around 5.375 percent for the 12-year securities and 6.75 percent for the 30-year notes. 
    (Source: african-markets.com)
  • Nigeria Central Bank has injected an additional $210 million into the Inter-bank Foreign Exchange Market. A routine transaction that plays a key role in the currency stabilization through the availability of official circuits of foreign exchange for customer needs in various segments.
    Thanks to a solid reconstitution of Nigeria’s foreign exchange reserves, the country has much more resources to intervene on the interbank foreign exchange market. Indeed, after hitting its lowest level ($25 billion) on December 13, 2016, the country’s forex reserves gradually recovered and peaked at $ 43.8 billion on March 9, 2018.
    (Source: Ecofin Agency)
  • Still in Nigeria, Federal government's domestic debt pegged at N12.589 trillion as at December 2017, the Debt Management Office (DMO) has said that a total of N1.476 trillion was spent in servicing the domestic obligations of the country between January and December last year. DMO said interest payment on federal government of Nigeria (FGN) Bonds was the highest accounting for 66.5 per cent of the total debt service. Interest payment on FGN Bonds had cost the country N982.65 billion in 2017.
    (Source: allafrica.com)
  • Tunisia, Moody's Investors Service has downgraded the long-term issuer rating of the Government of Tunisia to B2 from B1. The outlook was changed to stable from negative.
    (Source: african-markets.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®

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®

Bloomberg Commodity Index

Source:  Bloomberg®