Africa Bonds

Investors hope for cash inflows but no sign yet

Bond issuance from the CEEMEA region boomed in 2024, as investors made the most of high yields before interest rate cuts kicked in and keeping new issue premiums low. Meanwhile, a rejuvenated group from Turkey redrew the borrower map, writes George Collard

Interest rate cuts mean spirits are high in the CEEMEA primary bond market after it recovered a semblance of normality in 2024. But Donald Trump’s election as the next US president has added uncertainty to the trajectory of interest rates, throwing borrowers and investors a curveball, write George Collard and Francesca Young

The CEEMEA primary market turned a corner in 2024 after two dreadful years. Hopes of interest rate cuts fuelled demand, with investors wanting to lock in high coupons while they could. Market access returned for all but a few and although most deals went very well, some stood out more than others.

New faces will join those that need to refinance existing bonds

Variation over fair value calculations but deal still performs

The well-flagged deal will 'fly', said one observer

There was no clear reason why local banks were not picked, sources said, for first time in 17 years

Local banks play a vital role for the country in both domestic and international capital markets

Second African telecom tower owner to issue bond this year

New issue premium estimates ranged from 'minimal' to 35bp

For the first time in 17 years, no South African banks are involved in an overseas sovereign trade