By Tosin Sulaiman
LONDON, April 23 (Reuters) – Zambia has issued requests for
proposals to 11 international banks seeking to act as book
runners for its debut $500 million Eurobond, a government agency
official said on Monday.
Goldman Sachs, BNP Paribas, Standard
Chartered and Deutsche Bank were among the
banks short-listed from an initial 16 that submitted expressions
of interest, an official at the Zambia Public Procurement
Authority, who asked not to be named, told Reuters.
There has been strong appetite for African debt and the last
such issue from the region – a debut $500 million, 10-year
Eurobond from Namibia launched in October – was heavily
oversubscribed with an initial coupon of 5.5 percent. It is now
yielding 4.95 percent.
The limited supply from African sovereigns has ensured that
debut issues are eagerly anticipated, with Nigeria’s $500
million 10-year Eurobond last year attracting heavy demand.
The tender closes on April 27 and it would take a minimum of
three weeks to evaluate the bids, the official said. So far,
eight banks had confirmed their participation.
“Last week, we had eight confirmations from the short-listed
bidders that they will take part in the tender,” he said.
The agency has also issued requests for proposals to two law
firms, Clifford Chance and White Case, seeking a role as legal
advisers, he added.
The government of Africa’s number one copper producer
announced plans to issue a Eurobond in November when it unveiled
its first budget after an upset election victory two months
earlier.
Continued…
