Kenya and Nigeria are among the 10 securities exchange
targeted for IFC’s Pan-African
Domestic Medium-Term Note Programme. Other countries targeted include Botswana,
Ghana, Kenya, Namibia, Rwanda, South Africa, Uganda, and Zambia.
The programme will see IFC issue local
currency bonds in the targeted countries to support the local private sector
and also the capital market, says a statement from IFC. While the domestic
capital markets are excited about IFC’s foray, they are concerned at the small
amounts it is issuing. “US$50 million in the Nigeria market is not even a drop
in the ocean,” say analysts.
It is not clear what the size of the Kenyan
issue will be. However, it could be in the same region as the Nigerian issue
US$50million. IFC’s entry into any market raises its profile among investors
and fund managers leading to more foreign activity in the local markets. IFC,
said a Kenyan Banker in whose bank IFC is an investor,” is a confidence
builder. If it invests in your stock, other investor follow suit.”
Consequently, the markets are excited and are seeing even increased activity in
anticipation of IFC’s entry.
Stock market
players in Kenya agree saying IFC’s entry into the market is a vote of
confidence in the market. Stock brokers
in Nairobi say IFC’s entry will raise NSE’s profile among skeptics in West.
Africa whose bond market is generally small is likely to witness a huge influx
as countries issue infrastructure bonds to finance their huge infrastructure programmes.
Kenya has already floated More Kshs 100
billion (US$1.2 billion) infrastructure bonds
