{"id":59404,"date":"2024-01-12T16:35:00","date_gmt":"2024-01-12T16:35:00","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-is-set-to-pay-back-almost-r28-billion-by-the-end-of-january"},"modified":"2024-01-12T18:02:40","modified_gmt":"2024-01-12T18:02:40","slug":"south-africa-is-set-to-pay-back-almost-r28-billion-by-the-end-of-january","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-is-set-to-pay-back-almost-r28-billion-by-the-end-of-january","title":{"rendered":"South Africa is set to pay back almost R28 billion by the end of January"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>Nations in Sub-Saharan Africa have been locked out of international debt markets for 22 months now, and investors are increasingly betting the drought will soon end as countries seek funding for a slew of principal payments coming due this year and next.<\/p>\n

South Africa is due to repay $1.5 billion (R27.9 billion) in bonds this month, while Kenya has a $2 billion (R37 billion) maturity in June.<\/p>\n

Second-half principal repayments will then come from Senegal, Ivory Coast and Gabon. Ethiopia was slated for December but defaulted last month.<\/p>\n

It\u2019s already been a long wait for nations that need the funding and for high-yield investors eager for new deals. The drought in issuance began in April 2022 and lasted throughout 2023.<\/p>\n

The last time Sub-Saharan African countries spent a full year without a single international bond sale was in 2009, in the midst of the global financial crisis.<\/p>\n

\u201cThere has been limited supply from higher-yielding EM countries, so the demand may be robust for well-priced new issues with positive fundamentals,\u201d said Shamaila Khan, head of fixed income for emerging markets and Asia Pacific at UBS Asset Management.<\/p>\n

But issuance could be limited by still-elevated borrowing costs for most sovereigns in Africa, she said.<\/p>\n

One of the main contenders to try and end the lockout is Kenya.<\/p>\n

The spread between yields on Kenya\u2019s dollar debt and US Treasuries has narrowed by more than 400 basis points since reaching a record high last year.<\/p>\n

It closed at 599 basis points on Wednesday, according to JPMorgan Chase data, down from its high of 1,028 in April.<\/p>\n

\u201cKenya could well be the first to issue this year, and one would imagine that market demand would be forthcoming,\u201d said Simon Quijano-Evans, chief economist at Gemcorp Capital Management in London.<\/p>\n

If markets perceived that a new bond issue was coming, that could also help pull down spreads from current levels as it would imply an improvement in the country\u2019s financial position for 2024, he said.<\/p>\n

\u201cCombining that with a contraction in UST yields could help pull all-in yield for a 10-year USD bond closer to the 9% mark at some stage in the first half,\u201d Quijano-Evans said. Kenya\u2019s debt due in June currently trades at a yield of 15.8%.<\/p>\n

Other contenders to end the borrowing drought include South Africa, Angola and Nigeria, according to Morgan Stanley. Each could tap the market at yields around 10%.<\/p>\n

South Africa specifically could issue as much as $2.5 billion (R46.6 billion) in the second quarter, \u201cbut issuance of this amount will be very dependent on external financing conditions,\u201d strategists including Neville Mandimika said in a note to clients.<\/p>\n

Moody\u2019s cautions<\/p>\n

Still, Moody\u2019s Investors Service says the outlook for Sub-Saharan African sovereign issuers is negative this year. That\u2019s a reflection of risks from large debt burdens and the difficulties many countries will have refinancing at rates they can afford, analysts including John Walsh wrote in a report Wednesday.<\/p>\n

Ethiopia\u2019s default on Christmas was a signal to international investors and trade partners of the heightened risk, said Robert Besseling, chief executive of Pangea-Risk, an advisory firm focusing on analysis of African economies.<\/p>\n

\u201cMany will remain locked out of international debt markets, while for many, interest rates will be unaffordable,\u201d he said.<\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. Nations in Sub-Saharan Africa have been locked out of international debt markets for 22 months now, and investors are increasingly betting the drought will soon end as countries seek funding for a slew of principal payments coming due this year and next. South Africa is due to repay $1.5 billion (R27.9 billion) […]<\/p>\n","protected":false},"author":84,"featured_media":59403,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[274,315,275],"class_list":["post-59404","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-south-africa","tag-south-africa-2"],"yoast_head":"\nSouth Africa is set to pay back almost R28 billion by the end of January - South Africa<\/title>\n<meta name=\"description\" content=\"Nations in Sub-Saharan Africa have been locked out of international debt markets for 22 months now, and investors are in ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-is-set-to-pay-back-almost-r28-billion-by-the-end-of-january\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South Africa is set to pay back almost R28 billion by the end of January\" \/>\n<meta property=\"og:description\" content=\"Nations in Sub-Saharan Africa have been locked out of international debt markets for 22 months now, and investors are in ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-is-set-to-pay-back-almost-r28-billion-by-the-end-of-january\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2024-01-12T16:35:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-01-12T18:02:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/01\/sm_1705069849.31344.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"683\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-is-set-to-pay-back-almost-r28-billion-by-the-end-of-january#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-is-set-to-pay-back-almost-r28-billion-by-the-end-of-january\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"South Africa is set to pay back almost R28 billion by the end of January\",\"datePublished\":\"2024-01-12T16:35:00+00:00\",\"dateModified\":\"2024-01-12T18:02:40+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-is-set-to-pay-back-almost-r28-billion-by-the-end-of-january\"},\"wordCount\":559,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-is-set-to-pay-back-almost-r28-billion-by-the-end-of-january#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/01\/sm_1705069849.31344.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-South-Africa\",\"South-Africa\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-is-set-to-pay-back-almost-r28-billion-by-the-end-of-january#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-is-set-to-pay-back-almost-r28-billion-by-the-end-of-january\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-is-set-to-pay-back-almost-r28-billion-by-the-end-of-january\",\"name\":\"South Africa is set to pay back almost R28 billion by the end of January - 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