Africa Bonds

High yield from an issuer with major oil and gas players as shareholders attracts investors

Hybrid capital issuance in emerging markets is picking up after a quiet few years

Both are high quality companies in difficult operating environments

Demand has been good for new deals during and after execution

The trade will be the country’s second in dollars in the past year

Hybrid bonds are rare in the Gulf and even harder to find in Africa

Markets are 'less bubbly' after a steep rise in US Treasuries in December

Dampened US rates outlook bad news for EM inflows but numbers don't tell full story and non-specialists step up

Investors hope for cash inflows but no sign yet

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.

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