15 firms keen on $700m Eurobond
FIFTEEN potential book runners and five legal advisors have expressed interest in Zambia’s debut Eurobond of as much as US$700 million. The Zambia Public Procurement Authority (ZPPA) is currently evaluating the bids for both the book runner and the legal adviser.
Bank of Zambia deputy governor of operations, Bwalya Ng’andu expressed confident that results for the successful winners for both the book runner and the legal adviser would be announced by the ZPPA soon.
A Eurobond is an international bond issued in a currency other than the currency of the country or market in which it is issued. Dr Ng’andu said Zambia will have a successful bond issuance going by the list of companies that expressed interest in it.
“What is interesting is that we have attracted some of the best and renowned companies, which tells us that there is a lot of interest in the Eurobond and this shows that there is a lot of confidence in the Zambian economy. We are anxious to see the outcome,” he said.
Dr Ng’andu said in an interview in Lusaka last week. He however could not name the firms that have expressed interest for both book runners and legal advisors. Some bidders that have expressed interest for Zambia’s US$700 million bond include HSBC Holdings Plc and Rabobank International’s Zambia National Commercial Bank.
Recently, Finance Minister Alexander Chikwanda said Zambia will sell a 10-year Eurobond in 2012 to raise money for infrastructure and other construction projects. The bond that was expected to be issued last year but was put on hold as the European debt crisis curbed demand for debt.
Zambia will join other sub-Saharan African nations such as Nigeria, Ghana, Gabon, Senegal, Seychelles and Namibia, which have sold international debt.
[Zambia Daily Mail]