Africa

Telecoms company MTN Nigeria has signed a Nr200bn ($554m) seven year loan from local and international banks, as lenders remain in talks with other borrowers for hard currency transactions from the country.

Sabvest, the South African investment holding company, has substantially boosted its liquidity after two investment vehicles sold out of the stock.

Telecom Egypt has launched a $500m five year loan into syndication, with next week’s Eid al-Adha celebrations expected to stretch out the process until around the end of September.

Several large African companies are seriously exploring going public, with many likely to dual list domestically and in London, a boon for the city as Brexit clouds hover.

Mozambique’s bondholders have presented a restructuring proposal to the government, following their rejection of Mozambique’s proposed package in March.

Rating: B2/CCC+/BB-

South Africa state-owned utility Eskom’s return to the international bond markets on Thursday was hailed as proof of the faith investors have in Cyril Ramaphosa, the country's president. And it could well mark the beginning of the country’s rehabilitation in the debt capital markets as Eskom is widely thought of as South Africa’s biggest and most public financial problem. Francesca Young reports.

Eskom has released initial price guidance for its $1.5bn dual tranche bond but analysts and syndicate officials seem divided as to whether the premium offered over the sovereign is enough to make it a compelling purchase. But having set modest sizes for the notes, the large majority expect the trade to go well.

Eskom, the South African state-run power company, has said it could print its dollar bond as early as tomorrow and has confirmed that it will sell both standalone and government-guaranteed tranches. Investors have a wide range of views on fair value.

EM bond markets around the world have been forced by difficult conditions to shut down early for summer. The only trade due this week, from South Africa's Eskom, will have to attract investors that are ready to hunker down and wait for September.

Eskom’s return to markets this week is the latest example of how the best bet in the emerging markets is often not on how strong a company is, but how strong its friends are. That is a lesson well remembered for investors, as EM hits a rocky patch.

Zambia is looking for options to refinance an increasingly worrying debt pile in the wake of a ratings downgrade.