World Economy

African Sovereign Debt Issuance at $12.8 Billion

African Sovereign Debt Issuance  at $12.8 BillionAfrican Sovereign Debt Issuance  at $12.8 Billion

African sovereign have now issued $12.80 billion of Eurobond in 2018 ahead of a United States Federal Reserve rate hike as investors continue to hunt for attractive yields, AllAfrica reported. Ivory Coast sold $2.1 billion of bonds maturing in 2030 with a yield of 5.25% and 6.625% due in 2048. Egypt raised $4 billion with yields of 5.577%, 6.588% and 7.903%, respectively. The bonds were issued at three maturities, with a five-year tranche and a 10-year tranche raising $1.25 billion each, while a 30-year tranche raised $1.5 billion. The country got a $12 billion loan from the International Monetary Fund after meeting stringent requirements raising gasoline prices and cutting down on subsidies. Senegal tapped global debt markets for $2.2 billion with a yield of 6.75% with an average life of 29 years. A portion of proceeds from the sale will be used to redeem $200 million worth of Senegal 2021 Eurobonds while the rest will be used to finance infrastructure projects. Meanwhile, South Africa plans to raise $3 billion of external debt in each of the next three fiscal years.


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