Citigroup Sees Window for African Borrowers Before Fed Rate Rise
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A window has opened for African countries from Senegal to South Africa to lock in low borrowing costs by selling Eurobonds before the U.S. raises interest rates, according to Standard Bank Group Ltd. and Citigroup Inc.
Sub-Saharan African nations sold a record $9.2 billion of Eurobonds last year, up from $6.7 billion in 2013, as issuers including Ivory Coast and Kenya tapped the market before funding conditions worsened in the second half as crude oil prices plunged, weighing on economies such as Nigeria and Ghana. Since December, yields have dropped as oil prices stabilized and central banks in Europe and Japan extended stimulus, providing an opportunity to resume borrowing before the Federal Reserve tightens policy.