This week in Africa Finance : EFG Hermes completes 2nd bond issue, Emerging Africa Infrastructure(EAIF) new rating.
This week in Africa Finance : EFG Hermes completes 2nd bond issue, Emerging Africa Infrastructure(EAIF) new rating.
Also Egypt's valU acquires Paynas and Kenya’s Central Bank is seeking to raise US$41 Million.
Dear Africa Finance Review Reader,
I hope you had a good weekend. In today’s This week in Africa Finance a roundup of interesting news, trends, and dealmaking:
EFG Hermes completes 2nd issue of Valeo securitization bonds
South Africa’s Mergence Investment Managers acquires rental housing group
AIH Capital acquires minority stake in FutureGrowth Asset Management
Emerging Africa Infrastructure(EAIF) receives a new long-term Moody’s rating
Nigeria’s Neveah Limited and C & I Leasing Plc issue commercial paper
M & A Actions:
South Africa-based Institutional investor Mergence Investment Managers, has acquired a controlling equity stake in affordable rental housing group Live Easy through its Infrastructure and Development Equity Fund.
Egypt-based leading Buy-Now, Pay-Later (BNPL) fintech platform valU and a subsidiary of EFG Hermes Holding, said it has acquired Paynas, employee management, and benefits company that provides financial services to micro, small and medium enterprises (MSME).
Liquidity Event
Emerging Africa Infrastructure(EAIF) a Private Infrastructure Development Group company received a long-term issuer rating of A2 with a stable outlook from Moody’s.
Private Equity Deals :
Tana Africa Capital (“Tana”) and Sango Capital (“Sango”) have made a minority investment in one of Nigeria’s fastest-growing contemporary grocery retailers Sundry Markets. The investment is made through Sango’s (“Sango Fund III”) and by Tana Africa Capital’s fund (‘’TAC II’’).
Bonds :
Nigeria commodity trading company Neveah Limited has issued an N3.99 billion Series 5 Commercial Paper as it focuses on scaling its operation to be a leading exporter of world-class quality solid minerals and agro-commodities.
C & I Leasing Plc and CitiTrust Holdings Plc plan to raise about N100 billion in new short-term debt capital through the issuance of commercial papers. The FMDQ Exchange recently approved N50 billion commercial paper programme on its platform needed to support the company’s diversified leasing and business service conglomerate.
The Egyptian Financial Group Hermes Holding Company (EFG Hermes) announced the completion of the second issuance of securitization bonds for its subsidiary Valeo, at a value of EGP 532.6 million (approx. USD 28 million), as part of a program to issue securitized bonds worth EGP 2 billion (approx. USD 105 million.
Kenya’s Central Bank (CBK) is seeking to raise US$41 Million (Sh50 billion) from fixed-income investors by reopening two long-term bonds: a ‘15-year security, which was first sold in April at an average interest rate of 13.94 percent, and a ‘10-year paper’, which was auctioned in May at an average interest rate of 13.49 percent. The re-opening of the bonds is driven by investors demanding higher rates in response to rising inflation.
Fundraising Events :
AAIC Investment Pte. Ltd. (AAIC Investment), investment manager of the Africa Innovation & Healthcare Fund (AHF2), is pleased to announce that AHF2 has received investments from Marubeni Corporation (Marubeni).
South Africa-based growth equity firm AIH Capital has secured R400m of its first fund and has acquired 23.2 % of Futuregrowth Asset Management.
Venture Capital Deals
Egyptian ad-tech company ArabAds has raised US$30 million in Pre-Series B funding from AfricInvest Maghreb Private Equity Fund IV managed by leading pan-African investment platform AfricInvest.
The Economy :
Fitch, the global rating company has projected Ghana’s interest costs would be more than 45 percent of revenue for Ghana from now till 2024.
The Central Bank of Egypt’s monetary policy committee has kept the interest rates unchanged for the second time in a row.
Over US $274 million was drawn out of the Uganda economy for the full year ended June 2022 with the US $52 drawn out in the second half of the 2021/22 financial year.
The Central Bank of Zambia has left its interest rate unchanged for the third consecutive time as it expects inflation to be in the single digits over the next two years.
The Central Bank of Botswana has raised its monetary policy rate by 50 basis points to 2.65% aimed at targeting rising inflation.
People Moves:
Ramy El-Dokany has been appointed as head of the Egyptian Stock Exchange (EGX) board and Hebatallah El-Serafy as his deputy for a period of one year.
The Eskom Pension and Provident Fund (EPPF) the retirement fund administration services provider has appointed Sonja Saunderson as CIO.
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