Tullow Oil has raised $1.8bn via a bond offering to repay existing debt, ending a tense refinancing process the company had warned posed a “significant risk” of insolvency proceedings had it ended in failure, the Financial Times reported. The Africa-focused group, which has endured a difficult few years since it slashed its production outlook and parted ways with its former chief executive at the end of 2019, will use the proceeds to repay loans including bonds due this year as well as a lending facility linked to its oil reserves.
Resources Per Country
- Burkina Faso
- Cote d'Ivoire
- Equatorial Guinea
- Sierra Leone
- South Africa
- Congo (Democratic Republic of the Congo)
Zambia, which defaulted on payments to bondholders in November, is doubling down on debt with a high-stakes bet that nationalizing one of its biggest copper mines will help rescue its flailing economy, The Wall Street Journal reported. Once seen as among the most investment-friendly countries in the region, the landlocked nation in south central Africa is the most extreme example of a wave of populist governments in mining-dependent countries that are struggling to pay the bills after borrowing for infrastructure in recent years.
Mango Airlines, the low-cost arm of state-owned South African Airways, was forced to suspend all flights after missing payments to the country’s airports regulator, Bloomberg reported. The carrier is barred from taking off or landing at any Airports Company South Africa site, which includes the main hubs in Johannesburg and Cape Town. The grounding is an indication of the deteriorating financial position at Mango. The company has been hit by the coronavirus crisis that’s hammered the airline industry, forcing bailouts and pushing some carriers into insolvency.