Typesetter | Mar 23, 2017 | 0
Standard Bank, Government land Eurobond
Standard Bank successfully partnered with the Namibian Government on its second Eurobond issuance in the international capital markets which closed on 29 October.
According to a media release this week, Standard Bank acted as a Joint Lead Manager and Bookrunner on the transaction. The US$750 million, 10 year transaction, issued in 144A / Reg S format was tightly priced at a yield of 5.375%. The notes were rated Baa3 and BBB- by Moody’s and Fitch respectively.
The Namibia delegation, led by the Minister of Finance in the US and the Central Bank Governor in Europe, carried out an extensive investor roadshow covering 80 key accounts in Los Angeles, New York, Boston, UK and Germany.
On the day of pricing the transaction represented the first US Dollar standalone deal from a Central and Eastern Europe, Middle East and Africa (“CEEMEA”) Sovereign issuer in 3 months and is testament to the strong investor following and support for the Namibia story amongst international investors.
The order book, which included over 300 leading emerging market and high grade investors was spilt as follows by geography: US 49%, UK 29%, EUR 19%, other 3% and as follows by investor type: Funds 76%, Pension/Insurance 10%, Bank/Private Banks 6%, Other 8%.
Amit Mohan, Standard Bank Namibia’s Head of Corporate and Investment Banking said, the success of the Namibia Eurobond demonstrated that despite current challenges faced by emerging markets due to currency and commodity volatility, amongst other things, investor appetite for good quality names from Africa remain strong.
“Standard Bank is pleased to have been a partner in this formidable Eurobond issuance as we are not only a key financial player in the local banking industry but regionally and internationally as well,” he said.
Mohan said that in the last 12 months, Standard Bank had arranged and funded more than N$1.5 billion for projects within the public sector, further underlining their continued commitment to partnering with the government in achieving the objectives as outlined in Vision 2030 and NDP4.