Tanzania plans to issue a debut Eurobond in the tune of USD 700mn to fund infrastructure projects, The EastAfrican reported. The government expects to get a rating from some of the three global rating agencies, Fitch, Standard & Poors and Moody’s, by July 15. According to the Finance Ministry’s Permanent Secretary, Ramadhan Khija, if Tanzania is rated well, it will have the possibility to get funding for investments in roads, railways, ports and power generation.
In March, Tanzania sold USD 600mn worth of seven-year floating-rate bonds in a private placement at 600bps over the London Interbank Offered Rate (LIBOR). It was the first ever benchmark-sized private placement transaction by a sub-Saharan sovereign. The funds were aimed at supporting infrastructure projects.
Rwanda, rated B by Fitch and S&P, was the first East African country to issue a Eurobond earlier this year. It sold in April a USD 400mn 10-year debut Eurobond with a yield of 6.875%. East Africa’s biggest economy, Kenya has announced plans to sell a USD 1bn debut Eurobond in the second half of 2013, following the largely peaceful elections in March. In addition to Kenya, other sub-Saharan Africa countries that have announced intentions to issue Eurobonds this year include Ghana, Nigeria, and Angola.
Related Articles
Kenya deepens development ties with China as US funding wanes
Kenya is leaning more heavily on Chinese development financing as support from some traditional Western partners — notably the United States — has weakened in recent years, Daily Nation reported. ... more
Nigeria’s fuel marketers warn unpaid transport-cost debts threaten supply stability
Nigeria’s Independent Petroleum Marketers Association (IPMAN) has called for urgent government intervention to resolve long-standing debts inherited from the defunct Petroleum Equalisation Fund ... more
International fintech firm Revolut seeks full South African banking licence
Revolut, a global financial app, has applied for a banking licence in South Africa and appointed a local banker as chairman of its business in the continent’s most industrialised economy. ... more
Most Read
-
India’s smart metering push gains momentum
4 months ago
-
US expands oil sanctions on Russia
24 days ago
-
India’s smart metering push gains momentum
4 months ago