Global money managers have piled into a first-of-its kind dollar denominated debt offering concluded by Absa last week, which has given another ringing endorsement of the country’s banking system and may pave the way for issuances by other local banks.

On Thursday last week, Absa became the first African bank to undertake a “hybrid” bond issuance, when it looked to raise $400m from international investors. The bonds pay a fixed coupon (interest rate) and count towards capital reserves...

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