Compared with European banks that have built African retail operations, Deutsche Bank might not be as well-known as an Africa-focused lender. But it has long had important corporate and investment banking operations on the continent. It is one of the largest correspondent banks for African financial institutions and in the previous decade it helped many African sovereigns issue debut international bonds.
Since Eurobond funding became unaffordable for many African states, Deutsche has stepped up by providing funding with backing from development finance institutions (DFIs) and export credit agencies (ECAs).
During the awards period, Deutsche achieved a number-one position in Dealogic’s debt capital markets league table for Africa. It was bookrunner on the sovereign Eurobond returns in April last year by Angola and South Africa. In March this year, it helped arrange a $2.5 billion dual-tranche bond for Morocco. It also led a $1.5 billion senior unsecured term-loan facility for South African parastatal Transnet in June.
Deutsche’s African commodity-backed structured trade finance deals included a $2.8 billion pre-payment facility for the Nigeria National Petroleum Company and a $2.5 billion pre-export financing for Azule Energy in Angola. But its work goes well beyond sovereign bonds and established corporate borrowers.
“Many international investors are still sitting on the sidelines and awaiting the outcome of the sovereign restructurings in Africa, the global rates trajectory and the economic impact of the conflict on the continent,” says Maryam Khosrowshahi, Deutsche’s co-head of Africa coverage. “Except for a very select few, African sovereigns can’t justify locking in the price of international capital markets debt in this environment, so it is even more important to look to mobilize private-sector funding for infrastructure and other essential projects with support from DFIs and ECAs.”
Aside from its relationships with the development finance institutions and export credit agencies themselves, Deutsche also benefits from its knowledge of contractors, including mid-cap suppliers in countries such as Italy and France. For example, in Angola, it arranged financing for a food processing plant to be built by Italian contractor Andreotti Impianti, with backing from SACE. In Côte d’Ivoire it arranged financing for a road rehabilitation project by a division of France’s Fayat Group, with backing from BPI.
