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Proceeds from Afreximbank bonds hits $750 million

Some African capital market stakeholders say the international investing public’s high appetite for African Export-Import Bank (Afreximbank) development bonds remains as another bold statement in the continent’s reemergence as a global destination for investment.

Afreximbank says the international investing public’s insatiable demand for African debt investing  instrument forced it to close a 750 million dollars bond after achieving an order book of 3.4 billion dollars from 290 investors.

The African export-import bank said in a statement that their all time bond proceeds was the toast in the international debt capital market.

Daily Times also reports that the bond, which closed in London on May 17, 2016, is a five-year registered only bond note due in May 2021 with a coupon rate of four percent.

The bond was issued under Afreximbank’s existing Euro Medium Term Note Programme with a priced spread of MS+300bps and will be deployed to the bank’s trade finance in Africa and for other strategic activities.

“The level of subscription and diversification of investors in this transaction attests to the continued strong investor confidence in Afreximbank,” said Bank President, Dr. Benedict Oramah.

Oramah, who welcomed the fact that the deal achieved negligible new issue premium, noted the solid geographic spread of the final allocation with 36 percent going to Asia; four percent to the Middle East; 48 percent to the United Kingdom/Europe; and 12 percent to the United States (off-shore accounts).

Prior to pricing the transaction, Afreximbank had embarked on comprehensive roadshows across Asia, the Middle East, continental Europe and the United Kingdom, meeting more than 60 investors in the process.

In the Bank’s view, the strong feedback received during the roadshows is a testimony to investors’ confidence in Afreximbank’s credit profile and strategy, in particular, their satisfaction with the stable ratings outlook as a result of its successful equity capital raising efforts.

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