Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Africa Bond Sales Seen by Standard Bank Topping 2013 Record

July 31 (Bloomberg) -- Sales of African corporate and sovereign bonds in 2014 are set to beat last year’s record amount of $16.6 billion, according to Standard Bank Group Ltd., the continent’s biggest lender.

“There’s still a huge amount of interest and appetite,” Megan McDonald, the lender’s head of debt primary markets, told reporters in Johannesburg today. “Issuance will no longer be dominated by sovereigns” as increased debt sales are expected from companies and state-owned corporations, she said.

African issuers are tapping debt markets as borrowing costs from Nigeria to Rwanda drop to record lows. This year, yields on the continent’s debt retreated 89 basis points, or 0.89 percentage point, according to a JPMorgan Chase & Co. index.

“We see continued growth in issuance of Eurobonds from sub-Saharan Africa and continued appetite from international investors for African risk,” McDonald said. While most of the continent’s sales this year have been government dollar bonds, that may be changing, she said.

“We also see a diversification in terms of the dominance of the sovereign sector,” she said. There may be more sales from companies, financial institutions and state-owned entities across Africa, particularly from West and East Africa, according to McDonald.

Sub-Saharan corporates have issued $4.13 billion of debt this year, compared with $6.95 billion for all of 2013, while sovereigns have sold $6.39 billion in 2014 from $9.7 billion last year, according to Standard Bank. Nigerian lenders including Access Bank Plc and FCMB Group Plc have discussed Eurobond plans.

Sales from Africa account for currently only 4 percent of the volume of emerging-market Eurobond issues, according to the bank.

To contact the reporters on this story: Neo Khanyile in Johannesburg at nkhanyile@bloomberg.net; Vernon Wessels in Johannesburg at vwessels@bloomberg.net

To contact the editors responsible for this story: Vernon Wessels at vwessels@bloomberg.net Emily Bowers, Chris Kirkham

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.