Ivory Coast Reopened Eurobonds Get Orders More Than Triple Offer

ABIDJAN (Capital Markets in Africa) — Investors placed orders for more than triple the amount of Eurobonds offered by Ivory Coast in a reopened sale Monday, evidence of the unrelenting appetite for the higher returns on riskier frontier-market assets.

The west African nation, the world’s largest cocoa producer, issued 600 million euros ($725 million) more of its existing euro-denominated 4.875% coupon bonds due 2032 and 250 million euros more of the 6.625% coupon securities maturing 2048, a person familiar with the transaction said. The country received 2.8 billion euros of demand from investors, the person said.

Optimism about global recovery on the back of a flurry of fiscal stimulus coupled with the global roll-out of Covid-19 vaccines is driving yields lower in developed markets. That’s prompting investors to look for returns among the world’s lower-rated sovereigns.

Ivory Coast, which is rated six levels below investment grade by Moody’s Investors Service and one level lower by Fitch Ratings, appointed BNP Paribas SA, JPMorgan Chase & Co. and Standard Chartered Plc to manage the sale.

Source: Bloomberg Business News