South Africa

Emerging market bonds have been buoyed by several positives in key markets this week including a cabinet reshuffle in South Africa that has seen the return of respected former finance minister Nhlanhla Nene, and the upgrade of Russia to investment grade by S&P.

Two South African corporates are in the market for syndicated loans amid South Africa’s cabinet reshuffle, after former president Jacob Zuma resigned earlier this month.

Emerging market investors were optimistic after Cyril Ramaphosa was voted in as president of South Africa on Thursday, following the long awaited resignation of Jacob Zuma, though the administration has its work cut out to revive the country’s anaemic economy.

Shares in Steinhoff have fallen by over 12% in trading on Tuesday as the firm informed the Dutch regulator that it would not be publishing its 2017 financial results by January 31.

Banks across the Street have sought to woo shareholders with business models that celebrate the holy matrimony between Steady Eddie wealth management and (supposedly) reformed wild child investment banking. But the repercussions on bank earnings from the demise of South African retailer Steinhoff are a reminder that the course of true love never did run smooth.

Investec plc, the South African bank’s UK branch, has signed a loan for $450m — growing to more than double its launch amount of $200m after being three times subscribed.

Steinhoff International has sold a second chunk of its stake in PSG Group, the South African financial services company, in as many months, as Steinhoff struggles to stabilise itself after its disastrous revelation that three years' accounts will need restating.

Investec Bank plc, the South African bank’s UK branch, is expected to sign a loan to refinance a $300m facility signed in 2015.

Two large South African corporates are due to refinance some loans in the coming weeks, according to bankers close to the deals, who expect activity in the country to be high this quarter.

South African telecommunications company MTN Group is holding a non-deal roadshow in Taipei this month.

Steinhoff International, the retail conglomerate listed in Johannesburg and Frankfurt, said on Tuesday that its numbers for 2015 were unreliable and that prior years may also need to be restated.

How the Schuldschein market reacts when a borrower has payment difficulties has been a perennial question since the instrument reached a global audience. The revelations about possible false accounting at Steinhoff are likely to prove one of the market's biggest tests yet.