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.
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