Africa Loans

Trade and Development Bank and Standard Bank, have approached lenders to raise syndicated loans, despite the sort of price widening that has pushed many borrowers away from the loan market this year.

Ghana Cocoa Board (Cocobod), the central organisation of Ghana’s cocoa industry, has raised its annual syndicated loan. But the borrower did not have an easy ride and had to concede much higher margins, according to bankers.

The Arab Republic of Egypt — a frequent bond issuer — has signed its first syndicated loan. Egypt’s debut in the market, bankers said, is an attempt to diversify its funding to support an expanding state budget, just months after its debut green bond was delayed due to Covid-19. Mariam Meskin reports.

The Arab Republic of Egypt has secured its debut syndicated conventional and Islamic facility from a range of local and international lenders as it attempts to support the state budget, which has come under major pressure during the coronavirus crisis.

Ireti Samuel-Ogbu will replace Akin Dawodu as Citigroup's country officer for Nigeria.

South Africa’s Standard Bank is set to raise a syndicated loan by the end of the month, which, according to market sources, will be provided by Chinese banks. But bankers say the pipeline for syndicated loans in Africa and the Middle East remains nearly empty, as both lenders and borrowers continue to feel the impact of the Covid-19 pandemic.

The Nigerian National Petroleum Company has raised a financing package, backed by multilateral lenders, commercial banks and oil trading companies.

Junk-rated South Africa has found some relief from its ballooning fiscal deficit through multilateral institutions, which are helping prop up its battered economy. Though the government has supported domestic lenders, there may yet be opportunities for them to enter international markets, some believe.

Mozambique LNG, Africa’s largest project financing investment to date, has secured roughly $15bn of funding from a range of international lenders and credit agencies in one of the few sparks of emerging market loan activity this year. The deal shows there is still appetite for “overlooked” and lower-rated emerging market credits, bankers say.

Ghana Cocoa Board (Cocobod), which is in the market to refinance a one year $1.3bn loan facility signed in September, is facing troubles according to bankers on the deal, contrary to comments recently made by its chief executive.

Pressure is mounting on private sector investors to join official institutions in granting debt relief to emerging market borrowers. An important point will be whether private investors agree to waive cross-default clauses for sovereign borrowers.

Ghana Cocoa Board (Cocobod), the central organisation for Ghana’s cocoa industry, is in the process of raising its annual syndicated loan, but bankers say the borrower is running into difficulty as lenders’ risk appetite weakens.