Gabon to issue FCFA 98 billion infrastructure bond on regional market

Gabon is seeking a total of 98 billion francs CFA equivalent to $167 million from the regional market for infrastructure development.

The five-year bond which will be open to investors on June 1st has a yield of 6.5% and matures on 2021. It will be the third bond to be issued in the CEMAC regional market since 2014.

Proceeds from the bond will be used to complete the financing of development works of Libreville, Port Gentil, Oyem and Bitam Franceville roads.

Other projects earmarked for the proceeds include the rehabilitation of hospitals and telecommunications infrastructure.

Attijari Securities and Central Africa BGFI scholarship are the arrangers of the Gabonese bond.

The Central African nation sold a $500 million Eurobond in June 2015 at a yield of 6.95 percent. Deutsche Bank AG, JPMorgan Chase & Co. and Standard Chartered Plc managed the offer, which was about six times oversubscribed.

A small nation on the western coast of Africa along the Equator, Gabon has posted real GDP growth of about 6 per cent in the last four years as the government tries to reduce its dependency on offshore oil for revenues.

The former French colony, relies on oil which contributes 40 percent of the country’s earnings, 80 percent of export and 20 to 30 percent of its Gross Domestic Product (GDP).

Authorities are trying to attract more tourists and develop deposits of manganese, which is used to make steel.