AfDB ends mission on new bonds issue |19 November 2009

The mission has held advance talks with the authorities about their request for a partial guarantee to be attached to the new bonds that will result from the country’s forthcoming external debt exchange offer.

As part of this offer, holders of eligible claims – which will include the 9.125% Eurobond due in 2011 – will be invited to tender their instruments for new bonds.

The partial guarantee feature was conceived by the authorities as a way of providing extra value to creditors affected by the exchange offer in a way that will not place undue pressure on cashflows.

It is now expected that the AfDB will complete its review of the partial guarantee proposal in the next few weeks, and the government intends to launch the exchange offer shortly.