12 Dec 2018 Africa
Following the far-reaching state-capture allegations two years ago, many of South Africa’s state-owned companies continue to make the headlines for all the wrong reasons. Aubrey Matlabe, Group Treasurer for Airport Company South Africa (ACSA) tells Bonds & Loans about how the organisation has managed to duck this trend, and dives deeper into the company’s current funding plans, its bid for further investor diversification, and regulatory reform.
Nedbank and ABSA Bank were instrumental in helping Enel’s Green Power Division secure ZAR14bn financing for 5 wind farm projects across the country, enhancing the deal with innovative features including a tailored shareholder structure and cross-collateralization between the sub-portfolios.
Moving forward with plans to swap its debt from local currency into dollars, Nigeria’s Federal Government successfully placed close to USD3bn in international bond markets through a widely subscribed issuance in November that saw roughly three times that amount in demand from investors. But analysts are concerned that a confluence of factors – declining oil prices, persistently poor revenue generation, slowness to reform and an increasingly volatile political environment – could arrest the optimism and capital markets momentum generated by the sale.
With a tangible reduction in deal-flow from Africa on the international markets, infrastructure firms in countries like Nigeria this year have relied on the government and finance specialists to fast-track domestic capital market reforms, which ought to open up new sources of liquidity for the industry. We speak to Chinua Azubike, Chief Executive Officer of InfraCredit, the first 'AAA' rated specialised local currency infrastructure credit enhancement facility in Nigeria, about the state of infrastructure investing in Nigeria and the major influential factors influencing the sector’s outlook.
Newly appointed Minister for Finance, Tito Mboweni, faced a tough reception from investors when he announced his Mid-Term Budget Policy Statement at the end of October. Yet in spite of South Africa’s dire financial situation, the speech marks a potential welcome shift towards a broader reform programme for the country’s state-owned enterprises (SOEs).
Well before Robert Mugabe’s 40-year rule came to an end last year, many hoped a change in government would mark a fresh approach to addressing the structural flaws of Zimbabwe’s ailing economy. But one year on, despite the appointment of business-friendly Finance Minister Mthuli Ncube and a wide-ranging reform programme, rebalancing the fiscus remains subordinate to longstanding political sensitivities.
7 Nov 2018
Environmental, social and governance (ESG) indicators are integral to PIMCO’s sovereign credit assessments, which inform our investment decisions. But how exactly do we incorporate ESG considerations into our decisions?
Madhukar Khetan, Chief Operating Officer at Dufil Prima Foods, spoke to Bonds & Loans about the Nigerian company’s expansion plans, cost-revenue balance, and the role of the issuance house for the local debt capital market.
16 Oct 2018
Cape Town is one of the few municipalities to have issued a green bond, a hugely successful transaction that generated significant oversubscription despite a challenging local market backdrop. We spoke with David Valentine, the Treasury Director and Janine Marion Abrahams, Head of Bank and Treasury Loans, Finance and Treasury Department at the City of Cape Town, about how it prepared for the transaction and why it chose to issue.
Nigeria’s economy recorded better than expected private sector credit growth in the third quarter of this year, with more borrowers funnelling the proceeds towards CAPEX-related activities – despite next year’s federal election looming. We speak with Jan Friederich, a senior director at Fitch Ratings about lingering risks in the country.
- Off the Record: South Africa’s Benign Funding Environment a Boon for Some, Challenge for Others
- SWOT Analysis: South Africa
- Fitch Sees Investment Driving Growth in East Africa, Warns of Rising Levels of Debt
- Interview: Nedbank Bullish on East Africa, Refinancings and ECA-backed Deals to Dominate This Year
- Mixta Africa CFO on Affordable Housing Initiative, High Cost of Funding and Advice for Borrowers
11 Dec 2018