AFMI Weekly Insight March 8th 2019

8 March 2019


Bonds

Ghana sells 513.2 million Cedis of 19.75% Bonds. - Securities sold in rollover tender for bonds maturing March 8, 2021. (Source: Bloomberg.com/africa)

Currency & Monetary Policy 

Kenya's shilling strengthens to its highest in four years - The Kenyan shilling strengthened against the dollar to close at its highest level in four years on Thursday, buoyed by increased hard currency inflows and a drop in demand for imports, traders said.  At the 1330 GMT close of trade, the shilling traded at 99.60/80 per dollar, a level it last traded at in March 2015. It has been stuck tantalisingly close to breaking the 100 level in the past two months before the move in Thursday's session. (Source: af.reuters.com)

Democratic Republic of Congo retains benchmark rate at 14% - Democratic Republic of Congo’s Monetary Policy Committee kept central bank’s base rate unchanged at Feb.22 meeting in capital, Kinshasa, according to the statement signed by Governor. (Source: Bloomberg.com/africa)

Ratings

Moody's announces completion of a periodic review of Senegal - The credit profile of Senegal (issuer rating Ba3) is supported by the country's "Low (+)" economic strength, reflecting Senegal's lower middle income country profile, with an accelerating growth rate but with a moderate diversified economy; Senegal's "Moderate (-)" institutional strength, expressing the better institutional and policy effectiveness performance than the Sub-Saharan Africa average and the median for Ba3-rated countries, resulting in part from improved government efficiency; its "Low (-)" fiscal strength, taking account of the high government debt ratio but a favorable debt structure, including contained foreign exchange rate risk thanks to its local currency's peg to the euro backed by the France (Aa2); and its "Low (+)" susceptibility to event risk, driven by the government liquidity risk which is based on moderate funding needs (est. 8% of GDP in 2018) and constrained access to funding. (Source: moodys.com)

Moody's announces completion of a periodic review of issuers Côte d'Ivoire - The credit profile of Côte d'Ivoire (issuer rating Ba3) reflects a "Low (+)" economic strength with low per-capita income despite an increasingly resilient and diversified economy supported by very strong growth prospects; a "Low", albeit improving, institutional strength and policy effectiveness in part derived from its participation in the West African Economic and Monetary Union (WAEMU); a "Moderate" fiscal strength characterized by a moderate debt burden as well as ongoing fiscal consolidation efforts; and a "Moderate (-)" susceptibility to event risk which is driven by domestic political risk, due to a history of political tension, youth unemployment, and regional disparities. (Source: moodys.com)


African Domestic Bond Fund (ETF)


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®

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