Africa

23 Mar 2017   Africa, Deals, Deal Case Studies

CASE STUDY: Nedbank Pioneers AT1 Instruments in South Africa

Nedbank successfully priced South Africa’s first Tier 1 capital Basel III-compliant securities in 2016, setting the stage for future issuances ahead of the regulatory framework’s introduction in the country over the next year.

Gabon: A Step in the Right Direction

Analysing and investing in Frontier Emerging Markets usually comes with its fair share of challenges; often, these are centred on availability or quality of data, news, language barriers, and finally, accessibility. Gabon is a great example of how these challenges can distort the real opportunities before us, and progress made on key initiatives.

CBK Governor on the Trump Effect, Banking Sector Risks, and the Promise of Green Finance

Having weathered most of 2016 quite well, Kenya faces a number of domestic and external headwinds including a prolonged drought and increasing uncertainty around the future policy direction in the US, UK and Europe. But Patrick Njoroge, Governor of the Central Bank of Kenya believes some of these challenges also present opportunities – to explore further East African policy integration, double down on helping banks navigate new challenges, and facilitate the development of new and innovative financial instruments like green bonds.

Ghana Doubles-Down on Halving Deficit but Risks Remain

Hamstrung by a deficit twice the size of that estimated by the government of former President of Ghana John Mahama, all eyes are on how the newly elected President Nana Akufo-Addo and his right-hand man, Finance Minister Ken Ofori-Atta, navigate delivering key fiscal consolidation reforms and keep voters happy. With the economy on the mend, things are looking up – but the road ahead is riddled with risks.

Financing Africa’s Cities

Cities have the power to transform themselves and raise the standard of living for their inhabitants, but in Africa many have struggled in this endeavor due to lack of access to financing. To get a sense of how we can succeed, it is important to assess how others have failed. Here is a first-hand glimpse of the unsuccessful launch of West Africa’s first city-level bond.

CASE STUDY: Demand for Nigerian Eurobond Swells, Repricing Secondary Curve

The Federal Republic of Nigeria managed to aggressively price an oversubscribed US$1bn 15-year trade against a backdrop of significant political and economic volatility, a sign that investor confidence is slowly returning to the African sovereign.

CASE STUDY: Amandi Energy Goes Non-ECA Route on IPP Deal

The Amandi Energy Project was the only large scale base-load independent power generation project in sub-Saharan Africa to achieve financial close in 2016 and a strategically important project for the development of the country’s energy sector.

CASE STUDY: Afreximbank Sees Tight Pricing on Dual-Currency Loan Despite Dollar Strength

African Export-Import Bank (Afreximbank) managed to secure a dual currency syndicated term loan at the lowest margins yet, despite a strengthening dollar and increasing emerging market volatility following the US elections.

CASE STUDY: AFC Prices First Dollar Sukuk of 2017

The AFC’s upsized US$150mn was the first US dollar denominated sukuk issued by an African multilateral development bank and the first dollar denominated sukuk of 2017, helping the financial institution fund a number of infrastructure projects on the continent.

Basel III Could Drive Banking Sector Credit Rush in South Africa

With about ZAR72bn in senior unsecured bank debt maturing in 2017 and new Basel III requirements being phased in January 2018, analysts are forecasting an uptick in senior and subordinated issuance in South Africa through 2017 – a welcome change from relatively subdued volumes seen last year.

 

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