Kenya

African politics had the focus of EM bond investors on Wednesday morning with South Africa’s president Zuma surviving a no-confidence vote, and Kenya’s presidential vote looking like a victory for the incumbent, Uhuru Kenyatta. Africa has also provided this week’s only new issue, a $200m tap from the Gabon.

African agriculture conglomerate Export Trading Group (ETG) has approached the loan market for a borrowing of up to $100m.

Kenya’s $500m loan from development financial institutions (DFIs) will be syndicated six months from its signing date, to avoid clashing with the country's commercial loan of $1bn from international banks, according to one of the bankers on the deal.

Kenya has signed a $1bn loan, an increase on the initial launch amount, with around 20 banks, said a banker on the deal.

Kenya finally launched an $800m loan into syndication after the appearance of another deal for the government delayed the process.

Confusion over two loans to Kenya, one of which was arranged by multilateral lender Trade and Development Bank (TDB), may have subsided as clarity over the structure of the deals emerged this week.

International banks want quick answers from the Kenyan government on the status of its loan from Eastern and Southern African Trade and Development Bank (PTA Bank), which has threatened their bigger syndication for the sovereign just as the mandate is being finalised.

The African loan market has hit 2017 on the front foot, with bankers heralding the support shown for Kenya and Sibanye deals as testament to gathering confidence in the region — but only for the right credits.

Kenya has mandated four banks to arrange internationally syndicated loans of as much as $800m, ending a restless wait for competing lenders.

Loan bankers have been waiting on tenterhooks for Kenya to reveal a mandate for deals totalling as much as $1bn, with the country’s government having originally been set to make the announcement this week.

The Eastern and Southern African Trade and Development Bank (PTA) lowered the margin on the two year tranche of its $400m refinancing and added a three year clip for the first time.

Kenya Power and Lighting Company signed its $500m loan refinancing last week after extending the deal time to bring in more lenders.