New Africa Finance lifts slightly in after trade; Africa’s Ecobank prices tight to talk

By Rebecca Melvin

New York, April 11 – Africa Finance Corp.’s newly priced 4 3/8% notes edged up slightly on Thursday after the Lagos, Nigeria-based infrastructure financing company priced $650 million of the seven-year notes on Wednesday.

A London-based trader quoted the new Africa Finance paper at 99 3/8 bid, 99½ offered. That compared to a reoffer price of 99.257.

The new notes with an initial yield of 4½% were priced in tandem with a tender for African Finance’s $750 million of 4 3/8% notes due 2020.

Also for the Africa region, which has had a notably quiet primary market so far this year, Ecobank Transnational Inc. priced $450 million of 9½% five-year notes on Thursday.

The Rule 144A and Regulation S notes priced at 99.029 to yield 9¾%, or a spread of U.S. Treasuries plus 744.6 basis points. Pricing was tightened from initial talk in the high 9% area, while deal size was set in the middle of an expected range of $400 million to $500 million.

The proceeds will be used for general corporate purposes, which will include the refinancing of a portion of Ecobank’s existing bank debt.

Lome, Togo-based Ecobank is a pan-African lender serving wholesale and retail customers in West and Central Africa.

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