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Biggest Bond Binge in History Passes Africa By as Yields Rise

  • Africa’s decade-long rush into Eurobond market has halted
  • Yields on the continent far above emerging-market average
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Africa is missing out on the biggest emerging-market bond party in history.

As countries from Saudi Arabia to Papua New Guinea prepare to hit the market with tens of billions of dollars in Eurobond sales before the Federal Reserve increases interest rates, issuance from sub-Saharan Africa has all but dried up, with Ghana canceling a deal, Kenya, Nigeria and Ivory Coast delaying theirs and little in the pipeline. Only two nations -- South Africa and Mozambique -- have sold dollar securities this year, the latter in a restructuring of existing debt. African sales of $2 billion in 2016 are the lowest since 2008, when the financial crisis froze the market.