Absa delivered a commanding performance in African debt capital markets (DCM) in 2024, executing a diverse range of landmark transactions across sovereign, financial and corporate issuers, while continuing to expand sustainable finance access across the continent. The bank’s ability to structure and distribute deals in volatile macroeconomic conditions reinforced its leadership in DCM across the region.
Absa’s commitment to product innovation and sustainable debt structuring was evident in several first-of-its-kind transactions. In South Africa, the bank acted as sole arranger and sole sustainability adviser on the R1.5 billion ($85 million) sustainability-linked bond for Sappi Southern Africa. This was the packaging and paper industry’s first such issuance in the country, and was over four times oversubscribed across three-, five- and seven-year tranches. Uniquely, the deal included only upward pricing ratchets, with KPIs tied to greenhouse gas emissions reduction and certified fibre sourcing – underscoring Absa’s ability to structure instruments that align investor interests with long-term environmental outcomes.
In Tanzania, Absa acted as co-lead transaction adviser and sole sustainability coordinator for NMB Bank’s landmark debut sustainability bond. The dual-tranche issuance – comprising TSh212.9 billion ($80.6 million) and $73 million – was the first sustainability bond in the country’s history. Issued under a TSh1 trillion multi-currency medium-term note programme, the transaction marked a significant milestone for capital markets development in East Africa and demonstrated Absa’s ability to engineer sustainable debt solutions across frontier markets.
On the sovereign, supranational and agency front, Absa acted as sole arranger for the Government of Eswatini’s new R4 billion Protea Bond programme, and placed a debut R400 million issuance under the programme on the Johannesburg Stock Exchange (JSE). The deal marked a milestone for regional market integration, enabling a foreign sovereign to raise South African rand-denominated capital through the JSE for the first time.
Absa continues to set the benchmark for innovation, distribution strength and local market development
In the financial sector, Absa acted as joint bookrunner and joint lead manager on Ecobank’s $400 million senior unsecured note issuance – the first international DCM transaction by an African commercial bank since 2021. The deal was more than two times oversubscribed and attracted strong demand from African and global real money investors.
Corporate DCM remained a core strength. Notable transactions included Life Healthcare’s upsized R1.055 billion bond, which achieved 4.76x oversubscription and pricing inside guidance; and Hermes Developments’ MauR3.3 billion ($73 million) issuance in Mauritius, one of the country’s largest-ever local currency capital raises.
“As a leading pan-African bank, we remain relentlessly focused on developing capital markets across our home countries,” says Kumeshen Naidoo, head of DCM at Absa. “We are proud to have played a leading role in key transactions across various markets in 2024, which reflects our deep commitment to supporting clients and driving sustainable financing solutions across the continent.”
With dedicated capital markets teams in Johannesburg, Accra, Nairobi and Lagos – and strong alignment with global platforms across Africa and in the UK and US – Absa continues to set the benchmark for innovation, distribution strength and local market development in African debt capital markets.
