Chicago, Oct. 5 – The Gabonese Republic conducted a complicated refinancing which was labeled as Africa’s “first debt-for-nature swap” by participants, according to multiple press releases about the transaction.
The transaction included a tender offer and a $500 million offer of amortizing blue notes due 2038.
Gabon Blue Bond Master Trust, Series 2 is technically the issuer on the notes.
Proceeds from the new notes provided financing to Gabon Blue Bond Master Trust, Series 1, a sovereign lender, which in turn used the proceeds to provide a loan to the republic under a blue loan agreement.
The entire refinancing transaction also included a refinancing of over $442 million of Gabon’s notes through a discounted tender offer. An expected $125 million in new funding was created for ocean conservation projects in Gabon.
Bank of America was the sole bookrunner for the blue bonds.
Lazard Freres was the financial adviser for the republic.
The offering closed a little later than expected, on Aug. 15. When the transaction closed, it allowed the republic to settle the concurrent tender offer.
| Issuer: | Gabon Blue Bond Master Trust, Series 2 (Gabonese Republic)
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| Amount: | $500 million
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| Issue: | Amortizing blue notes
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| Maturity: | 2038
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| Bookrunner: | Bank of America
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| Counsel to issuer: | White & Case LLP
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| Counsel to underwriters: | Clifford Chance
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| Trade date: | Aug. 7
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| Settlement date: | Aug. 15
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