AFMI Weekly Insight March 9th 2018
9 March 2018
- Senegal has issued USD 2.2 bn worth of Eurobonds this week. The country sold EUR 1bn (USD1.2 bn) with an average life of 9Y yielding 4.75% and another USD 1bn 29Y tranche yielding 6.75%. The notes were oversubscribed as total bids reached USD 10.3bn. USD 200bn of the proceeds will be used directly to buy back some its Eurobonds maturing in 2021.
- Moody’s assigned Tanzania a B1 rating with a negative outlook. It was the first time the country had been given a rating by an international agency. Moody’s negative outlook was justified by unpredictable policymaking that could affect growth. The agency expects debt burden to remain well below that of regional peers.
- Nigeria expects to issue NGN 150bn worth of green bonds in 2018 to finance projects that have positive impact on the environment and provide solutions to change. This would follow the success of Nigeria’s debut issuance of NGN 10.69 bn last year.
- Still in Nigeria, the Debt Management Office (DMO) has opened the 2Y and 3Y Federal Government Savings Bond for the month of March at yields slightly higher than the rate it sold the bonds in February. The DMO is planning to sell the bonds at 10.746% for the 2Y and 11.746% for the 3Y vs 10.277% and 11.277% respectively in February.
- The Bank of Tanzania has sold a 7Y bond through an auction last week. The issue initially sought to raise TZS 100bn, but total bids reached TZS 230.9bn. The government finally retained an amount of TZS 150bn. The weighted average yield declined to 12.95 from 13.97% in the previous session held in December 2017.
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