Republic of Congo bond jumps 7 cents after missed payment made

CONGO, Capital Markets in Africa: The Republic of Congo’s 2029 dollar bond jumped by as much as 7 cents on Tuesday after trade body Emerging Markets Trade Association (EMTA) said the country had transferred funds to make an overdue payment on the issue.

The bond, in which $478 million is outstanding, traded as high as 71 cents in the dollar after closing at 64 cents on Monday, its lowest level on record, according to Tradeweb data.

EMTA had updated its trading practice on the debt in a statement on Monday, adding “payment was made (albeit late) to Euroclear for posting in clients’ accounts on August 9, 2016.”

Brazzaville had initially missed a payment of the interest and capital due on 30 June 2016, and then failed to pay up during the ensuing 30-day grace period, according to ratings agencies Moody’s and Fitch.

Both agencies had subsequently downgraded their assessment on the oil-producing central African country.

Source: Reuter Africa’s Business News