By Semafor Africa
Photos: YouTube Screenshots
Angola raised $1.75 billion through a eurobond offering, its first issue in three years, making it the latest African nation to sell dollar-denominated debt.
Kenya’s $1.5 billion eurobond sale last week was almost five times oversubscribed, which points to the demand for high-yielding bonds from African issuers.
A number of African countries are considering debt offers at a time when the region’s improving economic outlook is likely to reduce perceptions of risk among global investors.
Nigeria is looking to raise $2.8 billion in new loans that would include a $500 million Islamic bond sold to international markets, while DR Congo is also preparing to raise $1.5 billion by issuing a eurobond to finance infrastructure projects.
However, at least 23 countries in sub-Saharan Africa are in debt distress or at high risk of distress, the World Bank’s recent assessment noted, with public debt in nominal terms and as a share of GDP nearly doubling over the last decade. The still elevated risk of sovereign defaults carries “significant implications for fiscal stability and development outcomes,” the bank said.
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