AFMI Weekly Insight June 29th 2018
29 June 2018
- In Nigeria, according to the Debt Management Office (DMO), the Federal Government bond auction for June 2018 has been oversubscribed as investors bid NGN 66.7bn compared to the NGN 60bn offered. The DMO indicated that the oversubscription was in spite of the FX sale of USD 120bn which mopped up over NGN 65bn.
- I Still in Nigeria, the Federal Government revealed through its DMO, that it plans to raise USD 2.8 bn dollars in Eurobonds. The DMO indicated it sent requests to banks for bonds offerings pending approval from the Nigerian House of Assembly. Nigeria raised USD 2.5 bn in Eurobonds in February 2018, selling a 12Y note at 7.1% to raise USD 1.25bn and a 20Y tranche at 7.7%.
- Ghana sold GHS 237.8 million (USD 50million) worth of 3Y local currency bond at a yield of 17.5% according to transaction arrangers. The bond was open to offshore investors. The initial price guidance for this bond maturing in June 2021 was ranging between 17% and 17.75%.
- In South Africa, foreign investors’ holdings of South African bonds have dropped to the lowest level in more than a year after an important sell-off recorded since the beginning of May 2018. Offshore investors held 38.9% of government securities as of June 22, down from 42.8% in March. The bond outflows reached ZAR 56.5 bn (USD 4.2bn) since the beginning of May and occurred against the backdrop of a broad sell-off in Emerging Markets caused by a stronger US dollar and rising interest rates.
- On July 18, 2018, Senegal will repay the half-yearly margin and the total repayment of its Sukuk Etat du Senegal 6.25% 2014- 2018 for an overall amount net of taxes of XOF 12.894 bn (USD 19.3 million. Senegal has been the first country in the WAEMU zone to issue an Islamic bond. Since 2014, Senegal has respected all its commitments. The Islamic loan will mature in July 18 , 2018 and will be removed from the Regional Stock Exchange (BRVM).
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.
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