Africa's first international sovereign deal for 2014
Barclays has again acted as joint lead manager in the Republic of Zambia's successful pricing of a new $1bn 10-year debt transaction. The transaction comes just two years after the country's inaugural debt transaction in 2012 which was also lead managed by Barclays. This was also the first international sovereign deal out of Africa in 2014.
Ahead of the transaction, Zambia, rated B+ (S&P) / B (Fitch), conducted a seven day roadshow visiting over 80 investors in London, Los Angeles, San Francisco, Boston and New York.
Zambia adopted an intra-day execution approach to minimise the impact of market volatility and take advantage of positive sentiment following the roadshow and credit-supportive data releases. The bond which saw strong demand from asset managers was over-subscribed 4.35 times.
"This transaction achieved Zambia's goals of creating a further liquid benchmark in the USD market, extending the duration of its debt portfolio and raising funding for infrastructure projects in the transportation and energy sectors," said Simon Ollerenshaw, Head of Debt Capital Markets, CEEMEA, Barclays.
Barclays has operated in Zambia for close to 100 years and is now one of the country's foremost financial institutions measured in terms of financial strength, product offering and service capability. Barclays Zambia's corporate banking and treasury sales practices have, through investment of expertise and global capacity in the Zambian market, developed a strong working relationship with Zambia's Ministry of Finance.
"Our deepening capacity and involvement in Zambia, as indeed in all our African markets, is not only positioning Barclays as Africa's "Go-To" banking franchise but also demonstrates the role that Barclays is playing in developing this exciting continent," added Philip Lindop, Head of Investment Banking, Barclays Africa.
Note to the editor:
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