Global law firm Squire Patton Boggs advised the Gabonese Republic on its issue of US $580,000,000 9.375% amortizing notes due 21 October 2034.
The transaction, Gabon’s first public bond issue since 2021, was oversubscribed by 1.7 times and priced with a yield of 12.8 per cent in a challenging environment of rising U.S. Treasury yields. The proceeds will be used by the Government to service its debt, including clearing certain arrears as well as general budgetary purposes.
The Notes were offered in the U.S. under Rule 144A and outside the U.S. in reliance on Regulation S and were listed on the Main Market of the London Stock Exchange.
The multidisciplinary Squire Patton Boggs team was led by Tom Cerdan and Jill Dauchy and included Mariche Chambers, Jennnifer Val, Aaron Seamon, Maxim Khrapov, Ghezal Barghouty, Amina Ben Ayed and Thamer Shomar.
“We are delighted to support the Gabonese Republic on this notable transaction," commented Jill Dauchy. “The successful outcome is a result of the Government’s hard work to reinforce governance and debt management, including its recent public debt audit using IMF standards and definitions. By pursuing a public bond issue and meeting with over a hundred investors virtually and in person, the Minister and his advisors demonstrated a commitment to transparency.”
Earlier this year the firm launched its Sovereign Advisory Group expanding its longstanding representation of sovereign governments with an integrated offering advising on legal matters and policies related to debt sustainability, trade, and strategies for stimulating growth and investment.
“Transactions such as this demand legal expertise coupled with a deep understanding of sovereign finance, economic priorities and the policy considerations that shape decision-making," commented Jill Dauchy. “We are grateful to the Minister of Economy and Finance, Mr. Thierry Minko, and his colleagues, for the opportunity to act as legal counsel to the government as it returns to international capital markets and broadens its investor base.”
Tom Cerdan added, “It was a pleasure working with the Ministry, Alevina & Partners and the wider team on this high-profile transaction for Gabon. This engagement is a testament to the firm’s growing capital markets and sovereign debt practices in the wake of the firm’s recent significant investment in these areas”.
