JOHANNESBURG, Oct 19 – African companies raised $13.3 billion through hard-currency bond issuance in the first nine months of 2026, putting sales on track for their strongest pace in five years as credit conditions improve and international investors continue to seek higher yields.
The total includes $3.25 billion in private placements and ranks second only to the $17 billion raised in 2021, according to Bank of America Corp. Kay Hope, the bank’s managing director for global research, said in a note published Monday that issuance is likely to remain robust over the coming years.
Bank of America expects annual African corporate bond supply to range between $8 billion and $12 billion as credit quality improves and more companies access international debt markets.
Issuance expands across African markets
The number of countries represented among corporate bond issuers has also increased. Companies from 11 African countries issued bonds in 2026, compared with eight in 2021.
Issuers this year include Zambia’s First Quantum Minerals Ltd., Angola’s Azule Energy and South Africa’s Sasol Ltd., reflecting participation from businesses across the continent’s mining, energy and industrial sectors.
The rise in issuance comes as investors assess improving corporate credit fundamentals and the relative returns available from African debt compared with other emerging markets.
Hope said credit rating upgrades had outnumbered downgrades, while returns across rating categories had exceeded emerging-market averages. The sector has also recorded no payment arrears since 2020, according to the analysis.
“Credit quality is improving, upgrades outnumber downgrades, and returns by rating tend to beat EM averages.”
Bank of America sees sustained bond supply
Bank of America expects annual issuance of $8 billion to $12 billion over the coming years, supported by improving credit profiles and continued demand for African corporate debt.
Tighter credit spreads could encourage stronger borrowers and companies with established market access to issue or return to international bond markets.
However, higher interest rates could make hard-currency borrowing less attractive for some companies refinancing existing obligations. These borrowers may instead turn to domestic debt markets, bank loans or funding sources in the Gulf states.
The bank also highlighted a decline in the volume of undervalued CCC-rated debt, estimating it at $2.1 billion, down from $3.2 billion five years earlier.
Although sovereign rating caps can constrain corporate credit ratings, investors have increasingly been willing to look beyond those limits in pursuit of higher yields.
Corporate maturities rise sharply in 2028
African corporate bond repayment obligations remain relatively limited in 2026 but are scheduled to increase substantially over the next two years.
United Bank for Africa has the only corporate bond maturity identified for the remainder of 2026, with a $300 million obligation due next month.
Maturities rise to $2.2 billion across four issuers in 2027 before increasing to nearly $7 billion across nine issuers in 2028. The largest obligations scheduled for 2028 include $1.5 billion from Eskom Holdings Ltd., $1.2 billion from Tullow Oil Plc. and $1 billion from Transnet.
The concentration of repayments in 2028 could increase refinancing requirements for some major African companies, particularly if international borrowing costs remain elevated or market conditions deteriorate.
Sovereign debt risks remain a concern
Despite improving corporate credit conditions, Bank of America warned that sovereign debt problems could affect companies operating in the same markets.
Approximately 7% of the $149 billion sovereign debt stock covered in the analysis carries CCC or CC ratings. Senegal also remains in pursuit of a debt restructuring, highlighting continuing pressures in parts of the region’s sovereign debt market.
“Sovereign stress is a key risk to bear in mind.”
Corporate borrowers can face higher financing costs when their governments experience debt distress, while sovereign rating limits may also restrict the ratings available to companies based in those countries.
The outlook for African corporate bonds therefore depends not only on improving company-level fundamentals but also on the stability of sovereign finances, refinancing conditions and continued access to international capital markets.
