Standard Bank Group has successfully launched a US$300 million Eurobond for PTA Bank, the Nairobi-based multilateral financial institution. The transaction is the first Eurobond ever from an east African issuer, either sovereign or corporate. The transaction is also the only corporate Eurobond from sub-Saharan Africa in 2010 and only one since 2007.
Standard Bank Group acted as joint-bookrunner together with HSBC on this debut Eurobond. PTA Bank is rated Ba1 by Moodys and BB- by Fitch. The new 5-year Reg S bond was priced to yield 7.125%. This transaction is the inaugural issue under PTA Bank's new US$ 1 billion EMTN programme and the proceeds will be used to support new trade and project finance lending in Eastern and Southern Africa.
Florian Hartig, Standard Bank Group's Global Head of Debt Capital Markets, says: "This is a landmark transaction for Sub Saharan Africa which will have important benefits throughout the region for future sovereign and corporate issuers. The transaction also demonstrates the strength of Standard Bank's Eurobond distribution platform for Emerging Market issuers together with our expertise in African domestic markets."
PTA Bank has proven to be a leader among Sub Saharan African bond issuers. Future issuers will benefit substantially from rapidly growing international investor interest in Eurobond issuance from the region."
The PTA Bank, formally known as the Eastern and Southern African Trade and Development Bank is owned by nineteen shareholders, seventeen of whom are member states from the eastern and southern Africa region. The shareholders are: Burundi, Comoros, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Malawi, Mauritius, Rwanda, Seychelles, Somalia, Sudan, Tanzania, Uganda, Zambia, and Zimbabwe. China is a non regional shareholder while the African Development Bank is an institutional shareholder.
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