African eurobonds expected in 2012
Kenya, Tanzania, Zambia and Angola could issue bonds next year, EMEA Finance conference audience is told.
Four sub-Saharan Africa sovereigns could issue eurobonds next year, a senior banker told the audience at EMEA Finance’s African Capital Markets Conference in London on Wednesday.
Kenya, Tanzania, Zambia and Angola are four of up to 10 expected issuances from the continent in 2012, Peter Baillargeon, Standard Bank’s head of debt capital markets for Africa, said in a panel discussing the state of the continent’s debt markets.
This year has seen six African eurobond issuances and Baillargeon believes the momentum should continue into 2012. “We would anticipate up to potentially 10 new issues coming to the market next year, split between sovereigns and corporates,” he says. Baillargeon expects most of the corporates visiting the market next year to be financial institutions.
International investors in developed markets have faced a lack of deals recently and need to diversify their investments geographically. “There is a tremendous opportunity for African issuers,” Baillargeon said, although he warns that the success of these issuances will depend on stability in international markets.
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