AFMI Weekly Insight May 25th 2018

25 May 2018


Headlines 

  • Kenya has planned to issue a green bond in the 2018/19 fiscal year. The proceeds will help to finance projects in the renewable energy, green transport and wastewater treatment sectors. The government aims to raise USD 50 million. Last month, the Kenya Pooled Water Fund indicated it plan to have a KES 1.5 bn bond as a green bond. 
    Source: af.reuters.com
  • In Nigeria, the Debt Management Office (DMO) has indicated that the Federal Government has recorded NGN 50.45bn from its May bonds auction. The FGN made NGN 3.5 bn from a 5Y bond at 12.75%, NGN 8.54 bn from a 7Y bond at 13.53% and NGN 38.50bn from a 10Y bond at 13.98%. The DMO indicated that 62 bids out of 101 were successful and the auction drew subscriptions of NGN 89.82bn.
    Source: premiumtimesng.com
  • The Bank of Uganda(BoU) moves to single pricing of government securities at auction. This is a change from the current multiprice system. Securities in the primary auction will be sold at the same price to both competitive and non-competitive bidders. According to the BoU, this would stimulate secondary market activity as all investors would receive the same amount when selling bonds.
    Source: bloomberg.com
  • In South Africa, foreign investors have turned net sellers of local currency bonds for the year. Investors have sold ZAR 493bn (USD 38bn) compared to the ZAR 485 bn of purchases since the start of 2018. However, investors remain net buyers of South African stocks with USD 1.6bn more purchases than sale of equities. 
    Source: ft.com
  • Togo has listed some of its bonds on the Regional Stock Exchange (BRVM). This marks the entry of the country bonds on the Economic and Monetary Union of West African States (UEMOA)stock market. The amount issued and listed is XOF 61.8bn. 
    Source: apanews.net

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