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The East African : Oct 27th 2014
56 OCTOBER 25-31,2014 BUSINESS, MARKETS AND FINANCIAL ANALYSIS THE MARKET WHISPERER EQUITY MARKETS (WEEKLY CHANGE IN BENCHMARK INDEX) NSE 20 Share Index Kenya 5,197.67 -1.56% (CUMULATIVE MOVEMENT) DSE All Share Index Tanzania 2,668.18 -1.25% USE All Share Index Uganda 1,824.00 -0.44% RSE All Share Index Rwanda 136.17 -1.67% JSE All Share Index South Africa 47,940.42 0.41% NGSE All Share Index Nigeria 38,730.56 0.93% sub-Saharan Africa shared almost $120 million in fees in the first nine months of this year as Kenya’s entry into the commercial debt market helped Barclays jump to the top of the book runner rankings. Deals Intelligence, an an- alytical ranking from business data vendor Thomson Reuters, shows that Barclays jumped from position number three in the corresponding period in 2013 to overtake Citi and Deutsche Bank. Barclays Capital Group helped raise $2.2 billion for clients in the region followed by Citi with $2 billion and Deutsche Bank with $1.8 billion. In terms of fees, however, Barclays earned $5.69 million from debt placements, coming second to Citi, which earned $7.69 million. Deutsche Bank was third with $4.34 million. In all, investment banks earned $118.6 million, the highest quarterly income since March 2011 or more than three years. Barclays Capital Group Ba≥clays ove≥takes Citi in Af≥ica debt issues I nvestment banks competing for advisory roles in Sub Saharan Africa Target M&A - Most Targeted Nations Sub Saharan Africa Target M&A - Most Acquisitive Nations Barclays Capital Group helped raise $2.2 billion for clients in the region followed by Citi with $2 billion and Deutsche Bank with $1.8 billion The report also shows Source:Reuters together with JP Morgan and Co, QNB Capital and Standard Bank of South Africa, sold the $2.2 billion sovereign bond for Kenya in June. Despite the Kenya bond being the biggest so far in tropical Africa, Ivory Coast was the most active market for commercial debt followed by South Africa, Kenya, Nigeria, Zambia and Ghana. East Africa, however, re- mains a backwater for consolidation activity with no mergers and acquisitions of note reported over the period. This could be attributed to eligible targets being either family owned, subsidi- aries of multinationals or outside the sectors targeted by investors. Dyer and Blair, which had ranked number six over the corresponding period last year with fees of $3.56 million earned in a risk management role, did not feature in the top 10 during the period under review. that there were encouraging intra-state acquisitions in Angola and South Africa. Dealmakers should look to investors in the United Kingdom, Hong Kong and France, who showed sizeable appetite for assets in the region, perhaps driven by historical ties. Energy and power over- took materials as the most active sector for M&A. The two however were in decline with financials, telecoms and real estate on the up. Guess who’s stealing Lumina≥c’s dinne≥ settings? FRENCH CUTLERY maker Luminarc is fighting for the East African market with importers of cheap, often counterfeit tableware from China. The company courtesy of which families in East and Central Africa serve about 20 million meals daily has seen its growth prospects being undermined by Chinese cups and plates that come from a lowercost production regime. Once in the market, the products are readily embraced by price con- scious consumers. “We have seen some counter- feiting of our lower end products, which are simpler to fake,” said East Africa Glass Mart Group marketing director Evans Mwangi. Lowering costs The sole Luminarc distributor in the region, Glass Mart imports the glassware from France and says pricing of its products would be lower with a stable forex regime, lower shipping and port handling charges. This could prove a tall order. Why not enter into a technical agreement from Luminarc to produce the kitchenware locally as it does metal containers like sufurias and pans? “Glassware is produced using power at every stage. That would be feasible in the future as the cost of power comes down,” Mr Mwangi said. Another glazier in downtown Nairobi said this was the main reason why even construction and ornamental glass continues to be imported from Egypt and Asia despite the vast quantities of sand, the main ingredient in glass making, in East Africa. As Luminarc waits for the pledged cheaper power, it has launched a $280,000 promotion in Kenya, Uganda and Tanzania where buyers who spend $11 on its products stand to win household items and holidays. Published at Nation Centre, Kimathi Street, and Printed at Mombasa Road, Nairobi by Nation Media Group, Box 49010, GPO Nairobi, 00100. Registered at the GPO as a newspaper. Nairobi Office, Tel: 3288000, 211448, 337710, Fax 214531, 213936. Dar es Salaam Office. Tel: 2119657/8. Kampala Office, Tel: 232771, 232772. Fax 232781 Download free QR Readers from the web and scan this QR (Quick Response) code with your smart phone for pictures, videos and more stories South Africa easily came first in M&A moves, buoyed by the $472 million offer by Exxaro Resources for Total Coal South Africa. Angola, Mauritius, Nigeria and Ivory Coast followed. Ethiopia plans sove≥eign bond issue in 2015 ETHIOPIA plans to launch its first Eurobond early next year, as the country turns to the international debt market for cash to finance infrastructure works. Updates posted ahead of the Africa Stock Exchanges Conference to be held in Mombasa next month show the bond will be floated in January 2015. There was no indication of the size. The Ethiopian government says funds raised from the bond will be used to bankroll railways, roads as well as power generation and distribution. In May 2013, Rwanda raised $400 million via a Eurobond, joining a list of other African states such as Angola, Côte d’Ivoire, Gabon, Ghana, Namibia, Nigeria, Rwanda, Senegal, Seychelles, and Zambia that have tapped the international debt markets. Uganda has said it will stay out of the market for fear of falling into a debt trap while Rwanda is thinking of a bigger issue next year.
Oct 20th 2014
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