From Reuters:

Gabon plans to raise at least $500 million via a new 10-year Eurobond to fund infrastructure investment and will buy back up to $140 million of its 2017 Eurobond, according to a preliminary prospectus seen by Reuters.

The mineral-rich central African nation was one of the first sub-Saharan countries to make its debut on the dollar-denominated debt market when it issued a $1 billion Eurobond in 2007 with an 8.2 percent coupon. Others that have followed since including Nigeria, Cote d’Ivoire, Zambia and Rwanda.

Gabon, rated BB- by Fitch and Standard and Poor’s, has nearly $875 million of the 2017 bond outstanding and is offering to buy $140 million of that for cash.

It will also offer investors the opportunity to exchange any or all of the remaining amount for the new issue. Its aim is to extend the maturity profile of its debt and to reduce its borrowing costs.

International bond issuance by African sovereigns has reached a record high $8 billion this year, according to a report by Moody’s published in October, as countries seek cheaper sources of funding for infrastructure projects.

Many African Eurobonds have been oversubscribed by investors seeking high-growth markets and looking to diversify their portfolios away from the developed world.

Written by Tosin Sulaiman | Read more at Reuters