Africa’s first sustainability-link bond launched. Tunisian Carte Group acquires 39% equity in UBCI, Morocco's OCP Group raises a $350m loan facility.

Welcome to our weekly round-up of the most important news dominating the world of business and finance in Africa.

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Private Equity :

  • Airtel Africa Plc announced it has signed an agreement with The Rise Fund for a $200 million investment in Airtel Africa’s subsidiary Airtel Africa. Airtel Africa provides telecommunications and mobile money services across 14 Africa countries. The Rise Fund is the global impact investing platform of alternative investment firm TPG.

  • The Trade and Development Bank (TDB) which serves East and South African countries, launched a $75 million SME off-grid facility, which focuses mainly on enterprises in the renewable energy sector. The objective is to prioritise projects which provide communities with improved access to affordable electricity, efficient transport, and other social and economic infrastructure. The main recipients will be private firms and enterprises in TDB member states involved in the supply, construction, and operation of infrastructure projects.

  • South Africa’s Moshe Capital Fund Managers has announced that it is seeking to invest R350 million in diverse companies which have a significant presence in their sectors. The firm secured the funding commitment from FNB Commercial and has entered into a partnership agreement with RMB Ventures.

  • Moroccan-based OCP Group, the world’s largest phosphate mining and major fertilizer company raised a $350m term loan facility from Afreximbank. The funding will be used to fund the company’s expansion plans across Africa.

Venture Capital Deals:

  • A variety of funders will be contributing to the Kenya Commercial banks to strengthen capital and support for SMEs developing environmentally friendly projects with the spotlight on female-led businesses. A total of $150 million will be secured by the Kenyan bank once the negotiations are concluded.

M & A Activities:

  • Tunisian’s Carte Group, a major player in the Tunisian insurance market, has acquired a 39% share in Union Bancaire pour le Commerce et l'Industrie (UBCI) for $67million from BNP Paribas. The deal will strengthen Carte’s position as a leader in Tunisia’s financial service market.

Liquidity Actions:

  • South Africa based Netcare, a JSE listed company and operator of hospitals and other healthcare services in South Africa, has partnered with Standard Bank to launch Africa’s first sustainability-linked bond. The bond will be listed on the JSE and its coupon rate will be linked to Netcare’s achievement of certain pre-agreed sustainability performance targets.

  • Nigerian based Ardova Plc, a leading indigenous and integrated distributor of petroleum products, is to float a $157million bond issuance programme to fund its growth strategy.

  • The Central Bank of Kenya raised the funds from a bond sale in March after floating an Sh50 billion bond.

  • Nigeria based FMDQ Securities Exchange approved a total of $140million bond issuance programmes from Fidelity Bank Plc Series 1N41.21billion Fixed Rate Subordinated Unsecured Bond under its N100.00billion Bond Issuance Programme and TSL SPV Plc N12.00 billion Series 1 Guaranteed Fixed Rate Infrastructure Bond under its N50.00 billion Bond Issuance Programme. 

Economy updates:

  • Rwanda’s economy continues its contraction with a 0.6%-year-on-year decline in the economy, following a fall of 3.6% in the previous period.

  • Egypt’s Central Bank has decided to keep the overnight deposit rate, overnight lending rate, and the rate of the main operation unchanged at 8.25%, 9.25%, and 8.75% respectively.

  • Senegal’s inflation rate increased to 1.7% in February 2021 from 0.9 % in the previous month which was a 1 year low.

  • Mozambique’s Central Bank has decided to keep its MIMO interest rate unchanged at 13.25% during March 2021.

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By Africa Finance Review

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