Commodity slump sends exporters' Eurobonds to multi-year lows
By Sujata Rao and Karin Strohecker
LONDON, Sept 29 (Reuters) - Prices for Eurobonds from many commodity-exporting emerging markets have fallen sharply this week on fears that the latest metals price reversal will hit the ability to repay debt, especially in some African countries.
A major casualty of the metals price plunge is Glencore , whose bonds and shares have tanked to a record low. Almost a third of the mining and trading firm's value was wiped out on Monday alone.
The moves underscore the challenges faced by economies and companies exposed to the sector and to China's slowdown.
Fears of job cuts by Glencore and other mining firms are weighing on the assets of producing nations, especially Zambia whose kwacha currency plunged 17 percent on Monday to record lows. Glencore has mooted slashing 3,800 jobs in Zambia, where it is the second biggest employer.
Prices for Zambian sovereign dollar bonds have also hit their lowest ever levels..
The weakness has fed through the African Eurobond market, sending Gabon's 2024 dollar-denominated bond to a record low and Ghana's 2023 issue to its weakest in 10 months. Angola's 2019 and Nigeria's 2021 Eurobonds are meanwhile changing hands at their cheapest price for a month, according to Tradeweb data.
Prices have fallen between 10 and 20 cents so far this year. Continuación...