Bond Issue linked to Tanzanian Shilling
The African Development Bank (AFDB) today executed the first bond issue by a supranational which is linked to the Tanzanian Shilling. Barclays Capital structured the transaction and acted as sole bookrunner.
Commenting on the transaction, Heather Day, Director at Barclays Capital said "we are very pleased to have been able to work with the AFDB in structuring a TZS-linked issue, the first such third-party transaction. The AFDB is the natural issuer to open this sector and we expect on-going interest in and further development of the African capital markets".
"We are delighted to have concluded this transaction which has the support of authorities in Tanzania and is tailor-made to reflect investor demand" said Arunma Oteh, Treasurer of the AFDB Group. "The transaction is important for our 2006 funding programme wherein we plan to focus on local African currencies as part of our efforts to bring greater visibility to Africa among international investors. In fact, we understand that the Tanzanian Shilling is expected to gain denomination currency status with some of the international clearing houses in March 2006 which should further increase its attractiveness as an investment destination. We will continue to leverage on the momentum generated by this transaction in partnering with more African countries in 2006", she added.
"The transaction represents the Bank’s holistic approach to development issues, including development of financial markets, in the continent", adds Mr. Sheku Sesay, AFDB’s Resident Representative in Tanzania.
African Development Bank is the premier development finance institution in Africa and enjoys AAA ratings from international rating agencies Fitch Ratings, Moody’s, Standard & Poor’s and Japan Credit Rating Agency. AFDB has a funding programme of UA* 850 million (about USD 1.2 billion) in 2006.
* 1 UA = 1.42927 US$ as at 31/12/2005