AFMI Weekly Insight March 2nd 2018

2 March 2018


Headlines

  • Moody’s has maintained Ethiopia’s rating at B1 while the country’s outlook remains stable. The rating agency indicated that the rating affirmation recognizes its credit strengths and its large infrastructure investments and broadening access to credit. 
    (Source: Reuters)
  • S&P has affirmed Zambia rating at B with a stable outlook. The agency stated that fiscal deficits and debt burden are still very high. However, S&P said that improved copper prices and higher production volumes will support the economic growth and ease fiscal pressures. 
    (Source: Reuters)
  • Nigeria’s Union Bank is working with Citigroup and Renaissance Capital on a planned Eurobond sale following its USD 163 million share sale to boost lending. The bank’s issuance will follow Nigeria USD 2.5bn Eurobond sale in February. 
    (Source: kitco.com)
  • The Bank of Zambia sold ZMW 1.2bn worth on bonds on 23 February. The auction was oversubscribed. The offer was for ZMW 1.65bn and total bids reached ZMW 2.1 bn. This was the first bond auction of the year 2018. Yields were slightly changed with 10 bps and 52 bps decline in 2Y to 16.4% and 7Y to 18.98%. 
    (source: Zambia Business Times)
  • In Kenya, the treasury has re-opened two 15Y bonds from which it took KES 13.2 2 weeks ago. Initially, the Treasury attracted KES 24.1bn out of the KES 40bn; the Treasury finally accepted only KES 13.2bn in a bid to push interest rates down (KES 20bn) below the target.
    (source: businessdailyafrica.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®

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