Ghana Navigates Tightrope in Eurobond Debt Restructuring
Francis Kyei, Senior Market Analyst, Ghana is embroiled in a challenging negotiation with its Eurobond holders, with a limited range of options at its disposal, a confidential source from the Ministry of Finance told GFX today. The nation is pushing for significant concessions from its largest creditors, including deep cuts on Eurobonds, to meet its...
IMF Approves Crucial $684.7 Million Loan to Kenya Amidst Fiscal Challenges
Francis Kyei, Senior Market Analyst, The International Monetary Fund (IMF) has approved a significant financial boost for Kenya, with an immediate disbursem*nt of $684 million, as part of a larger $941 million lending package. This move is aimed at bolstering Kenya’s foreign-exchange reserves ahead of a $2 billion Eurobond maturity in June. The disbursem*nt, integral...
Ghana Achieves Four-Year Interest Freeze in Bilateral Debt Agreement with Official Creditor Committee
Francis Kyei, Senior Market Analyst The Executive Board of the International Monetary Fund (IMF) is scheduled to assess Ghana’s IMF program this Friday, January 19. This review comes in the wake of an accord reached by the nation’s bilateral creditors regarding the principal terms for reorganising Ghana’s $5.4 billion bilateral debt. A key element of...
Ghana Receives Debt-Relief Terms; IMF Optimistic About $600M Disbursem*nt
Francis Kyei, Senior Market Analyst Ghana has effectively negotiated debt-relief terms with its bilateral creditors, fostering confidence from the International Monetary Fund (IMF) regarding the forthcoming disbursem*nt of an additional $600 million tranche. Julie Kozack, the Director of Communications at the IMF, expressed confidence in the progress made in the talks between Ghana and its...
Ecobank Transnational Inc (Investment Analysis)
Francis Kyei, Senior Market Analyst Introduction This report provides an overview of Ecobank Transnational Incorporated’s (ETI) financial performance for the first nine months of 2023, highlighting key strengths and areas of concern. It provides insights into the bank’s ability to generate revenue, maintain financial stability, and navigate challenges. The analysis covers key financial metrics, comparative...
Ghana Explores Green Bonds for Climate-Resilient Projects
The government of Ghana is considering issuing Green Bonds to fund large-scale climate-resilient projects, Collins Kabuga, Senior Officer at the Ministry of Finance hinted at the virtual 2023 investment fair organised by the Ministry today. Taking a cue from Zambia’s Copperbelt Energy Corporation, which is currently raising $200 million through green bonds for a 200MW...
Ghana’s Debt Deal Stalled by China-Paris ClubRift, IMF Funds on Hold
Francis Kyei, Senior Market Analyst, GFX Brokers In an exclusive discussion with GFX today, a well-informed source from Ghana’s Ministry of Finance revealed significant challenges in the nation’s quest for an additional $600 million tranche, from a $3 billion IMF loan. The primary roadblock stems from disagreements over bilateral debt restructuring terms, involving a dispute...
Bank of Ghana Governor Calms Fears AmidstExternal Debt Restructuring Delays
Francis Kyei, Senior Market Analyst, GFX Brokers Today, Governor Ernest Addison of the Bank of Ghana held a press conference to announce theretention of the country’s Monetary Policy Rate at 30%, in response to the nation’s high inflation rateof 35%. Addressing the investor community, he also discussed Ghana’s strategy for potential delaysin financial restructuring, emphasising...
Kenya Charts Debt Management Course AfterSettling $2 Billion Eurobond
Francis Kyei, Senior Market Analyst, GFX Prime As it prepares to pay off its hefty $2 billion Eurobond due next year, the Kenyan governmentis addressing concerns about its soaring public debt, which currently stands at a staggering$69 billion, while laying the groundwork for a more sustainable fiscal future. The government’s strategy, according to details shared...
Kenya to Begin Repayment of $2 BillionEurobond Debt in December 2023
Francis Kyei, Senior Market Analyst, GFX Prime Kenya is gearing up to address its $2 billion Eurobond debt, with the first installment of $300 million set to be paid in December 2023. President William Ruto, in an address to the country’s National Assembly, assured investors that the country is on track to settle the sovereign...
Nigeria’s Ambitious Borrowing Plans for 2024: Balancing Act or Cause for Concern?
Francis Kyei, Senior Market Analyst, GFX Prime The Nigerian government is poised to embark on a borrowing spree in 2024. The foreign debt level of the nation swelled from $10.3 billion in 2015 to $43.2 billion as of June 2023. With plans to accrue an additional $8 billion, concerns are mounting over the specifics of...
Kenya Prioritises Concessional Financing for Maturing 2024 Eurobond
Francis Kyei, Senior Market Analyst, GFX Prime Amid concerns related to mounting debt repayments, currency fluctuations, and increasing bond yields, Kenya is making strategic moves to reassure investors and stabilise its financial outlook. Wallace Kantai, the Director of Communications at the Central Bank of Kenya, confirmed that the country is prioritising concessional financing and concurrently...
Kenya’s Mining Sector Reform Promises Economic Boost and Opportunities
Francis Kyei, Market Analyst The Kenyan government is taking steps to overhaul its burgeoning mining industry. Kenyan lawmakers have begun the process of amending the existing mining regulation to rectify administrative lapses and regulatory uncertainties that have plagued the sector. The primary objective is to attract investors and unlock the vast potential of the mining...
Ghana’s Mining Industry at Risk as Growth and Sustainability Levy Sparks Controversy
Francis Kyei, Senior Market Analyst The introduction of the Growth and Sustainability Levy (GSL) by the Ghanaian government has ignited a heated debate within the mining industry, raising concerns about its impact on growth targets and the country’s GDP. The levy, a non-deductible expenditure pegged at 1% of monthly production, has been criticised for deviating...
Concerns Mount Over Nigeria’s Economic Stability
Francis Kyei, Senior Market Analyst The latest GDP figures released by Nigeria show the country is navigating a complex economic landscape marked by mounting debt, a sluggish oil sector, and challenges in GDP growth. These factors raise concerns about the nation’s capacity to maintain fiscal stability and meet financial obligations. Nigeria’s public debt has surged...
Ecobank Transnational Inc. (Investment Analysis Report (H1, 2023)
Francis Kyei, Senior Market Analyst Introduction This report delves into Ecobank Transnational Incorporated’s (ETI) financial performance during the first half of 2023. It offers insights into the company’s revenue growth, cost management, and performance for the specified period. The period saw a commendable 14% increase in net revenue, driven by positive trends in both net...
Kenya’s Export Trade Revenue Surges 14.3%Year-on-Year in Q1, 2023
Francis Kyei, Senior Market Analyst Kenya’s export trade has witnessed significant 14.3% growth in the first quarter of this year, surpassing the previous year’s figures and painting a promising picture for the nation’s economic outlook. According to recent data released by the country’s Bureau of Statistics, Kenya generated $1.6 billion in export revenue during this...
Ghana to begin intensive negotiations with Eurobond creditors next month.
Francis Kyei, Senior Market Analyst, GFX Prime Starting next month, Ghana is embarking on intensive negotiations with its commercial creditors, a critical phase of its $3 billion International Monetary Fund (IMF) programme. This comes on the heels of the successful restructuring of its domestic debts and the acquisition of financial assurances from bilateral creditors. Ghana’s...
IMF Update: Ghana intensifies talks with creditors to unlock $3 billion bailout next month
Francis Kyei, Senior Market Analyst Ghana has intensified discussions with its external creditors to secure financial assurances from them to unlock the $3 billion bailout from the Executive Board of the International Monetary Fund (IMF) in May 2023. The country is determined to secure the IMF bailout next month, after missing the initial target of...
Tough times ahead for SSA economies amidst Fed rate hikes
Francis Kyei, Senior Market Analyst Economies in the Sub-Saharan Africa (SSA) region are still struggling to contend with soaring inflation, depreciating currencies, shrinking reserves, high cost of borrowing, unsustainable debts, among others, as the first quarter of 2023 draws to a close. These challenges can be attributed to many factors; however, a major underlying cause...
Kenya’s FX crisis deepens ahead of 3 coupon payments in Q2, maturing bond in 2024.
Francis Kyei, Senior Market Analyst Kenya is under intense pressure to service its Eurobond coupons in the second quarter of the year as the country’s foreign exchange crisis continues to deepen. Since the beginning of the year, the Kenyan government has been drawing its reserves to give the local currency lifeline support against the USD....
Ghana’s IMF request faces new challenges in Parliament.
Francis Kyei, Senior Market Analyst While Ghana seems to be making some inroads with the debt restructuring talks with its creditors, the country’s US$3 billion International Monetary Fund (IMF) bailout request has run into another problem. Three key bills which need the approval of the country’s Parliament as a conditionprecedent to the IMF deal are...
China can’t hold Ghana’s debt restructuring to ransom
Francis Kyei, Senior Market Analyst Despite fears that Ghana’s external debt restructuring negotiations may delay considering how similar talks between Zambia and Sri Lanka have dragged on, the West African country seems to be making significant progress. A government source with direct knowledge about Ghana’s debt restructuring talks has disclosed that the country has had...
SSA Eurobond Market Hit by Fed’s hawkish remarks… but remains best option for hedging.
Francis Kyei, Senior Market Analyst News of the Federal Reserve’s decision to lift interest rates “higher and potentially faster” than previously anticipated due to the persisting inflation in the United States (US) reverberated through global financial markets, and the Sub-Saharan Africa (SSA) Eurobond market was not spared. Federal Reserve Chair, Jerome Powell’s hawkish statement to...
Investment Analysis Report -Seplat Energy
Francis Kyei, Senior Market Analyst Introduction In the wake of the current volatility in the SSA sovereign Eurobond Market, we have evaluated the performance of Seplat Energy Plc, a hydrocarbon production company based in Nigeria, to determine whether the company’s bond on the international capital market presents an attractive alternative. We have analysed the company’s...
US-China tension: Any impact on Ghana’s bilateral debt restructuring?
Francis Kyei, Senior Market Analyst A delegation led by Ghana’s Finance Minister, Ken Ofori-Atta, is expected to go to China this week to begin talks on the country’s US$1.7 billion bilateral debt restructuring. However, the discussion is coming off at a time the diplomatic rift between China and the United States (US) seems to be...
Cloud of uncertainties over Ghana’s external debt restructuring
Francis Kyei, Senior Market Analyst It has taken Ghana about two months to convince its domestic creditors to accept new debt repayment terms as part of the conditions to secure a loan from the International Monetary Fund (IMF). The original terms of the domestic debt restructuring programme have been watered down to get the participation...
Kenya’s rising debt, shrinking reserves…early signs of a major crack?
Francis Kyei, Senior Market Analyst Kenya’s economy has shown resilience over the past year, compared to its peers in the region. However, recent data from the Central Bank of Kenya (CBK) shows an increasing public debt, a weak currency, and dwindling foreign reserves. There are also concerns that the new administration is more focused on...
U.S inflation hits 6.4%…implication for SSA Eurobond market
Francis Kyei, Senior Market Analyst Consumer prices in the United States (US) dipped from 6.5% in December 2022 to6.4% in January 2023, beating analysts’ forecasts of 6.2%, and raising concernswhether interest rates pivot will come anytime soon. The US inflation rose by 0.5% from 0.1% in December, partly reflecting an uptick inenergy prices while the...
DDEP: Ghana under pressure to secure 80% participation on deadline day
Francis Kyei, Senior Market Analyst Ghana’s Domestic Debt Exchange Programme (DDEP) ends today February 7 with government of Ghana aiming at 80% participation rate, after pushing back the deadline date on four occasions to allow for greater participation. However, there are growing concerns that Ghana may not be able to secure the 80% participation. Individual...
Ghana extends Domestic Debt Exchange Programme deadline to Feb 7
Francis Kyei, Senior Market Analyst The Government of Ghana has extended the deadline for the Domestic Debt Exchange Programme (DDEP) to February 7, 2023, from January 31, to allow for more participation in the programme. A statement from Ghana’s Ministry of Finance indicated that a revised and final Exchange Memorandum will be released by Thursday...
Kosmos Energy-Investment Analysis Report
Francis Kyei, Senior Market Analyst Introduction Kosmos Energy Ltd is an independent oil and gas exploration and production company focused on frontier and emerging areas along the Atlantic Margins. Established in 2003, the company’s target locations are under-explored and overlooked areas. Kosmos Energy’s assets include existing production and development sites offshore Ghana, large discoveries, and...
Tullow Oil Plc-Investment Analysis Report
Introduction This paper is our evaluation of the performance of Tullow Oil Plc. The aim is to guide investors considering the company’s corporate bonds on the international capital market to make informed decisions. We have analysed the company’s financials and future business prospects, as well as the current global and market conditions, and have identified...
Nigeria’s rising debt: Is restructuring the only solution?
Francis Kyei, Senior Market Analyst Nigeria’s debt has become a major topic in the country lately. There are growing fears the oil-rich country may be headed toward a distressed situation as neighbouring Ghana, Chad, Zambia, and Ethiopia. Nigeria’s President Muhammadu Buhari is pushing for the country’s Senate to approve his decision to convert the country’s...
Ghana’s frustration deepens as local creditors reject debt exchange programme
Francis Kyei, Senior Market Analyst Ghana’s domestic debt exchange programme has run into a major challenge. Local bondholders have largely rejected the programme, making it difficult for the debt-ridden country to restructure the debt for an IMF bailout. The Ghana Association of Bankers has directed all commercial banks in Ghana not to sign on to...
Ghana’s IMF Bailout: external creditors to decide nation’s fate
Francis Kyei, Senior Market Analyst, GFX Prime Ghana is going through one of the worst periods in its history. The country’s economy in the short to medium term depends on its ability to renegotiate the payment terms of its US$49 billion debt with its creditors to secure a bailout from the International Monetary Fund (IMF)...
Investment Analysis Report: United Bank for Africa (UBA) Plc
Francis Kyei, Senior Market Analyst Introduction This report is our brief analysis of the status of United Bank for Africa (UBA) Plc. We have analysed the company’s financials over the past five years, its credit ratings, and the current market and economic conditions to help investors considering the company’s Eurobond in 2023 make informed decisions....
