adminGoldman 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.
In February, tenders were invited for two book runners to act as joint lead managers, to assist in determining the size and pricing of the issue and coordinate road shows.
The official said the size of the issue had been confirmed at $500 million. — Al Jazeera.
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