ALCBF, TCX and the TZS Or: making local currency work in the most - - PowerPoint PPT Presentation

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Mar 12, 2023 528 likes •587 views

ALCBF, TCX and the TZS Or: making local currency work in the most challenging markets TCX, a blended capital structure Shareholders First Loss Investors ALCBF, TCX and the TZS 29-5-2018 TCX & ALCB fund Getting it right Total Avg.

SLIDE 1

ALCBF, TCX and the TZS

Or: making local currency work in the most challenging markets

SLIDE 2

29-5-2018 ALCBF, TCX and the TZS

TCX, a blended capital structure

First Loss Investors Shareholders

SLIDE 3

Deals 17 Currencies 8 Total Notional USD 36.3m

Avg. Deal

USD 2.1m Avg. Maturity 5 years

29-5-2018 ALCBF, TCX and the TZS

UGX 11% MWK 3% XOF 24% GHS 22% KES 16% XAF 6% ZMW 9% BWP 10%

Notional breakdown by currency

UGX 2 MWK 1 XOF 4 GHS 5 KES 2 XAF 1 ZMW 1 BWP 1

Number of deals per currency

TCX & ALCB fund – Getting it right

SLIDE 4

TZS swap: a challenge

29-5-2018 ALCBF, TCX and the TZS

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% RATE DATE

TZS SWAP RATES

TCX Government bond level Market

Local government bond overstates risk and cannot be used as benchmark
The overall risk evaluation is relatively constant (in carry terms)
Since December 2017, with US curve hiking sharply, market NDF’s have followed US curve increase
Similar movement can be observed in TCX pricing as TCX is additional to, but also based on markets