Gabon Eurobond Issuance Exceeds Target by 22.7%

• Gabon raised $920 million through a seven-year Eurobond, exceeding its initial target by 22.7%.
• The new Eurobond improves on several features of Gabon's previous international bond sale in February 2025.
• The notes will mature in 2033 and carry a 9.375% annual coupon with a three-year grace period.

The government said the issuance was 'significantly oversubscribed.'

Gabon's recent seven-year Eurobond issuance has exceeded its initial target by 22.7%, securing $920 million in funding despite facing high borrowing costs on international capital markets. The government priced the bond at a principal amount equivalent to about CFA524 billion, up from the initially sought $750 million. This increased demand allowed Libreville to increase the deal size by $170 million, with investor orders exceeding $1 billion. The notes will mature in 2033 and carry a 9.375% annual coupon, with a three-year grace period during which Gabon will pay interest before beginning principal repayments.

The new Eurobond improves on several features of Gabon's previous international bond sale in February 2025. The country raised $570 million through a bond maturing in 2029 with a 9.5% coupon, which is now surpassed by the improved terms of the latest transaction. Specifically, the amount borrowed has increased by 61.4%, the maturity period has been extended from roughly four years to seven years, and the coupon rate has been lowered by 12.5%. These enhancements are expected to have a positive impact on Gabon's financial situation.

The strong investor demand for Gabon's Eurobond is a testament to the country's growing appeal in the international capital markets. However, lawyers advising clients on investments in Gabon should note that the improved terms of this new Eurobond may impact investment strategies and risk assessments. The longer maturity period and lower coupon rate are significant improvements over previous issuances, which could influence investment decisions and risk management practices.

Lawyers advising clients on investments in Gabon should note the improved terms of this new Eurobond, including a longer maturity period and lower coupon rate, which may impact investment strategies and risk assessments.

Source: Original reporting via [Source]