Deals of the Year 2011: Afren senior secured bond
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Deals of the Year 2011: Afren senior secured bond

Afren senior secured bond
Size $450 million
Date January 27 2011
Lead managers BNP Paribas, Deutsche Bank and Goldman Sachs
Coupon 11.5%
Tenor Five years
return to the Middle East & Africa Deals of the Year index

Corporates from sub-Saharan Africa will find it easier to access the bond market now that sovereign benchmarks are in place that give an alternative to the equity markets. Indeed, this year saw perhaps the first non-South African sub-Saharan African corporate to borrow in the international capital markets.

Afren’s headquarters are in London and the exploration and production firm is a FTSE250 company, but its energy assets are all in Africa, primarily Nigeria. Nigeria is the location of the oil fields against which the bond is secured, on a first-priority basis.

With maturity in 2016, the $450 million bond built an order book of $1 billion and was priced to yield 11.75%, with a coupon of 11.5%. Dedicated emerging-market funds accounted for about 85% of the bonds, with high-yield funds taking the rest.

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