UPDATE 1-Gabon to raise USD890m through new USD1.5bn 2024 bond
(Adds background details)
By Davide Scigliuzzo
LONDON, Dec 5 (IFR) - The Gabonese Republic has launched a USD1.5bn 10-year amortising bond through which it is set to raise around USD890m of new cash and retire a large chunk of its only Eurobond outstanding.
The sovereign, rated BB-/BB-, has launched the new issue, which matures in December 2024 but has weighted average life of 10 years, at the final yield of 6.375%, tight to initial price thoughts of 6.5% area (plus or minus 12.5bp) released on Wednesday.
Gabon planned the new issue in conjunction with a tender and exchange offer on its outstanding 8.2% 2017s.
As part of the liability management exercise, Gabon will exchange around USD518m of its outstanding notes for USD610m of new 2024s, at an exchange ratio of roughly 1.18 based on the market price of the 2017 notes.
Gabon will also buy back around USD140m of the outstanding 2017 bond for cash.
Citigroup, Deutsche Bank and Standard Chartered are the lead managers on the 144A/Reg S transaction, which is expected to price on Thursday. (Reporting by Davide Scigliuzzo; Editing by Sudip Roy)
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