Africa Bonds
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South African private equity owner of Virgin Active and New Look gives itself flexibility to wait for right time to exit its portfolio assets in sell-downs and IPOs -
Observers had tipped the pair to issue Eurobonds this year, but yields are too high
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The market has expected a new bond from Nigeria all year, but yields are high
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China is a major creditor, but observers hope that may not be as big a problem as elsewhere
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Investors dislike the lower transparency and liquidity inherent in private placements
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African sovereign is an infrequent visitor to the international bond market
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Emerging market governments have to placate the markets and their citizens
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Governments on the continent face a tricky time balancing needs of population with demands of overseas lenders
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Two parties, diametrically opposed on many key issues, have joined forces to run South Africa
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Yields are too high to issue at a reasonable cost, and a drought means a rally is unlikely
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Some believe the issuer paid more by going private
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The market had been expecting a public deal, said investors
