2 Oct 2017 Africa
Ghana’s woes have been featured a lot in the press over the last years. One could summarise it as a country which, having found oil, was soon confronted with the demons that might come with such sudden access to wealth. The government’s overspending, and increasing borrowing on the back of future oil revenues, pushed the country towards the edge of insolvency when the commodity cycle turned. While the country seems to be on the mend, the critical question now is whether the government can regain investors’ trust.
While most investors and the Bank of Russia expected to focus much of their attention for the remainder of 2017 on an impressive rebound in the country’s economic prospects, a series of challenges at some of Russia’s lenders – small, medium and large – have forced the world’s gaze onto the cracks emerging underneath its financial system.
Saudi Arabia’s emergence in the international capital markets, first through the sovereign’s US$17.5bn conventional bond followed months later by its US$9bn sukuk, has the potential to herald one of the biggest shifts the region’s markets have seen in years.
The City of Cape Town successfully placed ZAR1bn in new green bonds this Summer to fund a raft of sustainability initiatives in the city, proving once again that cities are a natural fit for sustainable finance instruments.
Stock exchanges play a crucial role as an intermediary between investors and issuers, but their role in the sustainable finance market – as platform and infrastructure providers, as facilitators of cross-market standards development, and as educators bringing visibility to new asset classes – is so much wider than that. We speak with Robert Scharfe, CEO of the Luxembourg Stock Exchange, a leader in sustainable finance with over half of the world’s green bonds listed on its exchange, on how to attract more investors and borrowers to the market.
MUFG has a wealth of expertise in energy and natural resource infrastructure finance, which lends itself quite nicely to understanding how to measure risk in areas ripe for green bonds and similar instruments, and the bank is of course very active in bringing borrowers into the green bond market. We speak with Geraint Thomas, Executive Director at MUFG and leader of the bank’s green capital markets activity to learn more about how EM issuers and investors are finding their way in the green bond market, and the development of new sustainable finance instruments.
The rally in EM assets this year seems all but unstoppable as investors continue hunting for yield further afield amidst persistently low interest rates in developed markets and a weakened US dollar. Is it set to continue? Bonds and Loans speaks with global investors one-on-one about macro trends influencing EM debt capital markets.
Paraguay’s nascent capital markets sprang to life this year off the back of the country’s first cross-border bond sale in four years, part of the government’s strategy to develop the local market. The country’s industrial base and infrastructure ambitions also positions Paraguay very well for the green bond market, potentially opening the South American country up to vast new pools of liquidity. Bonds & Loans speaks with Lea Giménez, the country’s recently appointed Minister of Finance, on this and more.
3 Aug 2017
When it became apparent, after the collapse of Lehman Brothers, that the global economy was encountering something more than just an ordinary downturn, most market observers were certain they knew what was in store for emerging markets. After all, the three decades prior to 2008 were littered with crises in developing economies from Mexico to Malaysia. Still, while the worst never came to pass for EMs after 2008, a huge liquidity mismatch has persisted since.
Brazil offers a good example which illustrates the difference between signal and noise in investing. A complete mess from a journalistic perspective, Brazil has been one of the best investments in global fixed income markets and continues to offer an attractive investment proposition. We examine why countries with so much bad news can be such excellent investments.
- Transneft vs Sberbank Ruling Threatens to Derail Russia’s Derivatives Market
- For Emerging Market Investors, Gaining Deep Insight into ESG Still a Huge Challenge
- Rating Agencies: Credit Where Credit’s Due
- Peru Sees Silver Lining as El Nino Clouds Gather
- Turkey’s Sovereign Wealth Fund Promises Better Governance, More Synergies to Bolster Returns
16 Oct 2017
13 Oct 2017