Africa Loans

The Republic of Angola has signed a €1bn credit line from Deutsche Bank to fund private investment projects in the country. The deal is part of a wider trend of increasing funding support for the country’s growing private sector.

Sasol, an integrated chemical and energy company, last week announced a five year $1.8bn loan with a range of leading international lenders. The loan is the first corporate one in South Africa since its hotly contested elections in May. Loan bankers expect to see an improvement in borrowing conditions as a number of banks tap the market before year end.

Guinea Alumina Corp, a subsidiary of Emirates Global Aluminium, has secured a $750m loan, in the largest financing package for a greenfield mining project in Guinea's history.

The head of international loan finance at South Africa's Standard Bank Group will retire after 37 years with the bank.

Ivory Coast will finalise a seven year loan imminently, according to bankers. The deal reflects healthy appetite for sovereign borrowing in the region.

Emerging market loan volumes continue to suffer with year-to-date volumes down 60% from the same period in 2018. Global economic slowdown and the fear of trade wars, combined with the increasing appeal of the bond market, are dampening the prospects of recovery in the syndicated loan market in 2019.

Opinion polls indicate that South Africa’s incumbent African National Congress party and president, Cyril Ramaphosa, will win the country’s hotly contested general election, held on Wednesday, with a reduced majority. Bankers expect financing business to return to normal soon, after pausing in the run-up to the election.

Analysts expect the African National Congress (ANC) to win South Africa's general elections next Wednesday. Although a number of deep-rooted domestic problems have the potential to throw the country into an economic crisis, bankers expect FIs to remain "safe" in the worst of scenarios.

FirstRand Bank has transferred outstanding dollar debt from one of its syndicated loans to Rand Merchant Bank International. The amendment comes amid an anticipated increase in loan activity from South African banks, which bankers are keeping a close eye on.

Mauritius Commercial Bank has raised a new dual tranche $800m loan after receiving commitments of over $1bn. The deal was welcomed by bankers as one of the few new money financings in the market.

Rothschild & Co has appointed Martin Kingston as executive chairman of its board in South Africa, among other personnel moves in the country.

Ghana Cocoa Board has signed its first sustainability-linked loan facility, kick-starting this year’s environmental, social and governance financing in emerging markets. The deal emerges as a trio of global trade bodies have launched a set of standards to codify this fast-growing market segment, which some financiers are still trying to come to terms with. Mariam Meskin and Mike Turner report.