AFMI Weekly Insight May 11th 2018
11 May 2018
- MTN Group Ltd. is planning to borrow up to NGN 400 bn (USD 1.1 bn) in Nigeria to fund local investment and refinance existing debt in the country. This will be achieved through long-term loans and bond issues. The Group also intends to list its Nigerian unit on the Nigerian Stock Exchange which expects more corporate issuances as companies are looking to take advantage of the current low interest rates.
- The sale of Federal Government of Nigeria savings bonds for the month of May 2018 has commenced on May 7, 2018 and will last until May 11, 2018. The Debt Management Office (DMO) is managing the operations on behalf of the government. The offering consists of a 2Y bond offering 9.48% and a 3y bond offering 10.48%.
- Ghana has opened books on a US dollar dual-tranche offering comprising amortizing bonds with 10 and 30-year average lives. The tranches consist of a benchmark May 2029 bond in the low 8% area yield and a benchmark May 2049 tranche in the low 9% area. The deal is co-arranged by Bank of America Merrill Lynch, Citigroup, JP Morgan and Standard Chartered.
- Rwanda will sell a 10Y Treasury bond worth 10 billion Rwandan francs (USD 11.52 million), The proceeds will be used to finance infrastructure projects. Bids for the bond will be received from May 21 to May 23. It will be listed on the Rwandan bourse on May 29 for secondary buyers.
- Fitch Ratings affirmed Rwanda’s long-term foreign-currency issuer default rating at ‘B+’ with a stable outlook. The agency indicated Rwanda’s strong governance and doing business metrics, low public debt/GDP and high-growth potential as key drivers for this rating action. The rating is weighed down by the country’s low income per capita and its persistent and large current account deficits.
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