AfDB Sees Africa Eurobond Issuance Slowing on Rate Concern
- Governments should borrow in domestic market, Adesina says
- Mozambique’s debt crisis is a ‘very unique’ situation
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African governments may curtail foreign-currency bond sales in coming months amid expectation that U.S. policy tightening will make it more expensive to pay back those debts, African Development Bank President Akinwumi Adesina said.
“Right now there is a little bit of caginess with regard to issuing dollar bonds or Eurobonds because the Fed rates are going up, which means it’s becoming a race to the top of the yield curve,” Adesina said Wednesday in an interview at the Conference of Montreal in Canada. “There is a bit of cautiousness now because the interest rate is very high. So there’s not a lot of excitement to issue bonds right now.”