MEDIA RELEASE
31 MARCH 2021
RMB assists The Republic of Ghana to issue USD3bn+ multi-tranche Eurobond, including an inaugural zero-coupon tranche
View our spokespeople as they discuss the transaction on the following television channels:
https://www.cnbcafrica.com/2021/ghana-taps-into-international-capital-markets-to-raise-3bn/
In Africa’s largest Eurobond issuance since the onset of the Covid-19 pandemic, Rand Merchant Bank (RMB), the corporate and investment banking arm of FirstRand Bank Limited, acted as Joint Lead Manager and Joint Bookrunner (JLM), alongside other transaction parties, in the Republic of Ghana’s four-tranche Eurobond. RMB also acted as Dealer Manager on Ghana’s Tender Offer on its 2023 maturity. Eurobonds. RMB is proud to have assisted Ghana to issue a new money Zero Coupon Senior Unsecured Eurobond, the first of its kind by an Emerging Market (EM) sovereign.
Ken Ofori-Atta, Ghana’s Minister for Finance, who was sworn in on 30 March, 2021, has in the past made a case for the creation of an “inclusive global forum to rebuild the international financial and economic architecture and a new ability to respond equitably and rapidly to such a catastrophe.” The effective execution of the zero-coupon Eurobond tranche is another step towards achieving this vision and helps to create additional fiscal space to assist Ghana Build Back Better post the Covid-19 impact on the economy. RMB is pleased to have been able to assist the Government to achieve its goal on this transaction. The issuance further demonstrates the RMB Debt Capital Markets Team’s expertise, innovation and ability to execute amidst a volatile market backdrop.
This issuance enables the Ministry of Finance to raise funds to refinance more expensive shorter-dated debt with affordable term debt. This transaction was preceded by a 3-day virtual deal roadshow, where Ghana presented its impressive credit story to global fixed income investor base, whilst emphasising the government’s focus on fiscal consolidation, completion and continuity as the economy recovers from the impact of the pandemic.
Commenting on the transaction, James Formby, Global RMB CEO, says: “Ghana has always been a trailblazer as an issuer in the capital markets and was the first Sub Saharan African Sovereign to issue a 40-year Eurobond. RMB is delighted to have been appointed by Ghana to jointly lead the execution of this Eurobond, especially the novel Zero Coupon tranche. The appointment of RMB as Joint Lead Manager and the successful outcome of the transaction can be attributed to RMB’s commitment to Ghana through our on the ground presence, and the continuous investments we have made in our global credit distribution platforms.”
“Our agility in turning around the transaction within a short period enabled Ghana to navigate the choppy waters in the markets and achieve the government’s objectives in terms of their debt management strategy. The services of RMB’s leading Debt Capital Markets Team, based in London, a key financial hub, and remains available to African issuers to help them direct capital into the continent for investment, growth and development.” adds Dominic Adu, CEO of First National Bank Ghana.
Sharing their views on the deal, Eyitayo Netufo, Head of International Debt Capital Markets and Harris Hadjitheoris, Head of Bond Syndicate at RMB, say: “It was a pleasure working with the market astute Government of Ghana deal team as they expertly executed on the advice of the bookrunners on the transaction which enabled a very successful deal despite the volatile market backdrop.”
According to Michael Larbie, CEO RMB Nigeria and Regional Head West Africa, “our philosophy as a pan-African integrated financial institution is to leverage our combined advisory, investing, distribution and risk management expertise to deliver solutions to our strategic clients - in line with our parent FirstRand Group’s principles of shared value.
This translates into a partnership with a country, where we as a Corporate and Investment Banking Group intentionally use our core business activities, including our role in allocating capital across the economy, to add broad value to society.
For example, for the Republic of Ghana, RMB has demonstrated these principles with the recent Eurobond capital markets issuance as Joint Lead Arranger for the Sovereign. This is complemented by our continuous investment in deepening FNB’s retail, corporate and commercial offering in Ghana, through greater innovation and commitment.
The success of Ghana’s recent Eurobond issue confirms that there is significant investor appetite for sub-Saharan Africa debt issuance, when guided and supported by financial institutions with established track record, in-depth knowledge of the country and international debt markets, and have the trust of both issuers and investors. Ghana’s success was achieved notwithstanding the difficult market conditions for African sovereigns in this COVID pandemic era, where debt-to-GDP have reached significant highs, several African countries have been downgraded by the international credit rating agencies, and African economies collectively contracted in 2020 by at least 2.2%. The Ghana issuance therefore highlights how important it is to partner with the right Banks in positioning an Issuance.”
RMB and First National Bank, members of the FirstRand Group family, remain committed to Ghana and are proud to have been able to assist the Ministry of Finance with this transaction.
End.
Contact:
Oluwayemisi Ogunbodede l RMB Nigeria l Oluwayemisi.Ogunbodede@rmb.com.ng
About RMB
Rand Merchant Bank (RMB) is a leading African Corporate and Investment Bank and part of one of the largest financial services groups (by market capitalisation) in Africa – FirstRand Bank Limited. We offer our clients innovative, value-added advisory, funding, trading, corporate banking and principal investing solutions.
We offer our clients innovative, value-added advisory, funding, trading, corporate banking and principal investing solutions.
At RMB we are passionate about solving problems for our clients by asking the hard questions. We challenge accepted thinking. We analyse and seek solutions beyond the obvious. We are innovative in our thinking and turn challenges into opportunities. We call ourselves Solutionist Thinkers who deliver on Traditional values. Innovative ideas.
Our ability to think differently, our collaborative spirit, our client-centric solutions and our belief that great minds don’t always have to think alike, is what sets us apart.
As the Corporate and Investment arm of FirstRand Bank Limited (which is wholly owned by FirstRand Limited), we have access to a network of retail banks in 25 African countries, including representative offices and branches in the UK, India and China.
