The Republic of Chad opened subscriptions for its first local-currency bond last month. The state aimed to raise CFEFr100 billion ($220 million) in five-year notes. Dele Babade, chief executive of Ecobank Capital, which arranged the deal, says it was an oil-backed transaction, structured around government receipts from the Chad-Cameroon pipeline.
The offering by Chad, usually first or second in indices of the world’s failed states, is the latest example of African sovereigns accessing the capital markets. Nigeria and Senegal issued $500 million bond transactions in the international markets earlier this year and Angola is expected to debut by the end of the year.
Most sovereign issuance, however, is taking place in the domestic markets. Ghana, Namibia, Nigeria, Tanzania and Zambia all issued sovereign bonds of more than one year’s maturity in May and June, according to Barclays affiliate Absa Capital, with Kenya, Mauritius and Uganda poised to follow.
Kenya also priced its first 30-year bond in February, raising KSh8 billion ($100 million). The Gambia and Lesotho recently issued debut transactions, with three-year maturities. In December, Cameroon launched its debut bonds of CFEFr200 billion, listed in Douala, and maturing between 2012 and 2015, according to Reuters.
