Kenya plans $500 million Eurobond buyback with new loans
Kenya's government has announced plans to buy back up to 25% of its $2 billion international bond that is set to mature next year. The decision follows the country's successful acquisition of new loans, according to central bank governor Kamau Thugge. The move is aimed at addressing concerns over whether Kenya has the capacity to repay its impending debt. As a result, the bond due in 2024 experienced a significant increase in value. Kenya's government has been exploring various strategies to manage its debt burden, including refinancing and accessing alternative funding sources such as China. This buyback initiative marks another step in that direction. The government's actions aim to provide reassurance to investors by ensuring that repayments on the bond are managed effectively.
Lundin in talks with Japanese trading houses to develop Argentina mine
Canadian miner Lundin Mining is said to be in talks with Japanese trading houses and major mining companies to sell a stake of between 40% and 50% in its copper-gold mine in Argentina. The news was exclusively reported by Reuters, and Lundin Mining’s incoming CEO, Jack Ludin, confirmed in an interview that the company plans to make an announcement next year. Following the Reuters report, Lundin Mining’s shares turned positive and saw an increase of up to 4.2%. While the specific trading houses and miners involved in the talks have not been disclosed, this potential partnership could bring significant investment and expertise into Lundin Mining’s Argentina mine. The sale of a stake in the mine would provide the company with capital to further develop the operation and potentially expand its presence in the region.
TSMC tells vendors to delay chip equipment deliveries
TSMC, the world's leading contract chipmaker, has reportedly asked its major suppliers to delay the delivery of high-end chipmaking equipment due to concerns about customer demand. This move by TSMC reflects growing nervousness in the industry, with CEO C.C. Wei noting weaker economic conditions, a slower recovery in China, and softer end-market demand. As a result, shares in TSMC suppliers, such as ASML, have declined following Reuters' exclusive report. ASML, a Dutch-based supplier, saw its shares drop by 2.5%, making it the biggest loser in the euro zone STOXXE50 index. Similarly, ASM International, a smaller equipment firm and also a TSMC supplier, fell by 5.6%, while BE Semiconductor, a packaging equipment firm, dropped by 3.3%. These developments suggest that TSMC is taking cautious measures amidst the uncertain global economic landscape and is signaling potential challenges ahead for the chip industry.