Absa Capital, a division of Absa Bank Limited, and Barclays Bank Botswana today announced the successful issuance of the BWP70 million Botswana Vaccine Institute Pty Limited (“BVI”) debut bond in the Botswana debt capital market. The 10 year fixed rate bond was well supported by the investment community as evidenced by a subscription level of 211%.

The bond was issued under the Issuer’s BWP100 million Domestic Medium Term Note Programme. It will be listed on the Botswana Stock Exchange under bond code BVI001 with settlement on May 7th, 2008, paying a coupon of 11.23% per annum.

Stephen Van Coller, Head of Primary Markets at Absa Capital said Absa Capital was delighted to contribute to the growth and development of the Botswana debt capital market.

“This was the second transaction executed in the last six months by Absa Capital in Botswana. Again it has shown that investors in the Botswana market continue to display a willingness to explore other types of issuance methodology other than the traditional fixed price auction.”

“This has again resulted in greater transparency, enhanced investor demand and spread compression, resulting in a favorable outcome for our client,” said Van Coller.

According to Jacques Els, Head of Bonds, Convertibles and Hybrids at Absa Capital, market conditions in Botswana are generally favourable for debt issuance with stable macro fundamentals and surplus liquidity.

“The successful placement of quality credit into the market is hardly surprising considering the shortage of long dated assets in the Botswana market. Despite a number of new issues by government and corporates in recent months, the supply of bonds is not sufficient to meet the demand from life companies and pension funds,” said Els.

Absa Capital and Barclays have a proven track record in advising on all aspects of arranging and placing debt issues in Botswana including documentation, credit marketing, investor road shows as well as placement and distribution.

This latest transaction follows the successful placement of the BBS004 BWP75 million note in November 2007 for Botswana Building Society.

Absa Capital and Barclays are currently finalising another proposed BSE listed bond transaction for a state owned enterprise in the listed Botswana debt capital market.  

Motswedi Securities acted as Joint Placing Agent along with Absa Capital on the BVI bond issue.

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Absa Capital
Absa Capital, a division of Absa Bank Limited (Absa) and affiliated to Barclays Capital, is a leading South African investment bank with global reach, offering clients financing, risk management and advisory solutions in a wide range of currencies and structures across the globe.