AFMI Weekly Insight May 18th 2018
18 May 2018
- In Nigeria, the Federal Government is offering for subscription NGN 70 bn worth of bonds in an auction scheduled for May 23, 2018 according to the Debt Management Office (DMO). The DMO will sell NGN 20bn issue maturing in April 2023 at 12.75%. It will also sell NGN20bn 7Y re-opening bond maturing in March 2025 at 13.53% and a NGN 30bn 10yre-opening maturing in February 2028 at 13.98%.
- In Uganda, there was a Treasury bonds auction this week for a total of UGX 220 bn (USD 59.30 million). The weighted average yield on the 3Y bond rose from 11.251% to 11.862% at its previous sale in March 2018 while the yield on the 15Y bond rose from 14.432% to 14.975% at its previous auction in February 2018.
- Ghana has tapped into international debt markets last week with a US dollar dual-tranche offering comprising amortizing bonds with 10 and 30-year average lives. The bonds have attracted USD 8 bn worth of bids from international investors. The country placed USD 1 bn 10Y bond at 7.627% while the 30Y bond was priced at 8.627%. The deal is co-arranged by Bank of America Merrill Lynch, Citigroup, JP Morgan and Standard Chartered.
- Fitch Ratings has affirmed Cameroon's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B' with a Stable Outlook. The agency indicated the rating action balances low GDP per capita of USD 1,410 and a weak business environment against sustained economic growth and macroeconomic stability provided by the Central African Economic and Monetary Community (CEMAC) franc zone, which ensures currency convertibility and reduces foreign exchange liquidity risks.
- South Africa has tapped into the international debt markets with a USD 2 bn dual-tranche offering of USD-denominated securities maturing in 2030 and 2048. The country has set the yield for the June 2030 bond at 5.875% while the tranche was initially marketed in the 6.375% area. The yield for the June 2048 note was set at 3.30% while it was initially marketed in the 3.375% area.
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®
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