Africa Loans

Cameroon’s Nachtigal Hydro Power Co has raised euro loans, estimated at above €900m, to fund construction of a €1.2bn 420MW hydroelectric plant on the Sanaga river near Yaounde. Most of the debt is coming from development finance institutions, but a few commercial banks are involved.

MetLife, the US insurance company, has made an unusual investment as part of its impact investment portfolio, which has about $200m of assets. It is providing a revolving credit facility to an impact investment fund, to enable it to cope more easily with redemptions.

Two emerging market borrowers have been forced to postpone planned deals this week, with investors demanding better yields to risk their cash in the volatile market.

Steinhoff’s multi-billion euro equivalent debt restructuring saga took another step forward this week, with the company receiving High Court approval to press on with a scheme of arrangement related to its US subsidiary Mattress Firm.

Telecom Egypt has signed its $500m loan, with 11 mostly Gulf region banks joining the trade during the syndication process.

Africa Finance Corp (AFC) has signed a $300m financing package from a Chinese state run bank for the first time, at a time when China’s lending into the continent is coming under increased scrutiny.

Steinhoff has asked its creditors for a one month extension on its multi-billion euro debt restructuring process, with the South African retailer saying on Monday that it needs longer to finalise documentation.

The advance of global warming, highlighted by the Intergovernmental Panel on Climate Change’s report this week, not only demands that the private sector accelerate efforts to cut carbon emissions. Companies must also adapt to the changing climate – and this will involve interacting in new ways, experts say.

Sonangol, the Angolan national oil and gas company, has mandated Standard Chartered to arrange a term loan after a two year absence from the market.

Angola has signed a $2bn loan from China Development Bank, putting more debt onto the sovereign balance sheet as the country’s oil company seeks to borrow from commercial lenders.

Sonangol, the Angolan national oil and gas company, has entered the loan market after a two year absence, following a rise in oil prices.

Ghana is not preparing to issue 100 year bonds this year, according to deputy finance minister Charles Adu Boahen, but has not ruled them out for 2019, although the nation is looking at different opportunities to raise long term capital.