South Africa

Lenders are still keen to underwrite sterling loans after the UK’s Brexit vote — as shown in Steinhoff’s £452m deal — said one head of Emea loan syndicate.

South Africa's Steinhoff has agreed to buy UK discount retailer Poundland in a £597m deal, with Crédit Agricole one of two banks underwriting the loan financing. The French bank also benefited from Steinhoff’s thwarted bid for Darty earlier this year, when it co-underwrote a facility for rival bidder Fnac.

Ascendis Health, the South African maker of diet supplements, garden pesticides and medical equipment, has announced the final terms of its fully underwritten R1.2bn ($83m) rights issue.

South African state-owned electricity firm Eskom has signed $1.34bn of loans, arranged by African Development Bank. The financing includes what four bankers said was the largest ever ‘B’ loan tranche.

African Bank is gathering responses this week for a two tier buy-back of its outstanding dollar and Swiss franc debt in a bid to reduce its interest expense. The bank was bailed out by the Reserve Bank of South Afica in April.

Two South African rights issues are under way - one from a position of strength and one to deal with weakness - as the Johannesburg Stock Exchange rallies after the shock of Brexit last Friday.

Sub-Saharan Africa’s credit markets are benefiting from Britain’s decision to leave the EU as well as a more dovish stance from the US Federal Reserve, with bonds rallying to new lows, according to EM specialists.

South African investment firm Brait has signed new four year debt facilities as it seeks further potential acquisitions.

Johannesburg-listed drug manufacturer Aspen Pharmacare completed arranging €3bn-equivalent of loans on Wednesday. The multicurrency deal was more than twice oversubscribed in the euro tranche.

Eskom, the South African state-owned electricity firm, is arranging a syndicated loan with a guarantee from African Development Bank (AfDB), and the deal could be as large as $1bn, said one banker this week.

Investec, the South African-UK bank and asset manager, raised £138.3m on Thursday with a 5% capital increase, conducted as an accelerated bookbuild by JP Morgan.

Aspen Pharmacare Holdings, the largest drug manufacturer in South Africa, has nearly completed syndication of a large dollar loan, according to bankers.