Romania, African Bank price add-ons; Afren prepares up to $350 million note offering

By Aleesia Forni

Columbus, Ohio, Feb. 28 - At London's close, the Markit iTraxx SovX CEEMEA Index, used to measure sovereign default risk in Africa, the Middle East and Central and Eastern Europe, tightened by 6 basis points by the London close Tuesday and sat at 277 bps, according to a trader there.

In the primary market, Romania and African Bank Ltd. both priced add-ons this week, while Afren plc (B/B) plans a $300 million to $350 million note offering, according to market sources.

Romania adds $750 million

Romania priced a $750 million add-on to its 6¾% 10-year sovereign bond at 102.166 to yield 6.45%, according to a syndicate source.

The original $1.5 billion deal (BBB-) priced on Jan. 31 with a 6 7/8% yield.

Citigroup, Deutsche Bank and HSBC are the lead managers.

African Bank taps notes

Meanwhile, African Bank tapped its existing 6% fixed-rate senior notes for $50 million on Monday.

The notes due 2016 were issued at a spread of 649 bps over mid-swaps under the bank's $2 billion euro medium-term note program.

The original $350 million issue of five-year senior notes, which priced at par on Feb. 22, is "powering ahead," according to a market source, with a bid price of 102.25 and an offer of 103.

Rand Merchant Bank was the sponsor, and Goldman Sachs was the bookrunner and lead arranger.

African Bank is a Johannesburg-based lender.

Afren sets deal range

Afren plans to offer between $300 million to $350 million of seven-year senior secured notes (/B/B) this week, according to a market source.

The Rule 144A and Regulation S notes come with four years of call protection.

Proceeds will be used to repay bank debt and for general corporate purposes.

BNP Paribas, Deutsche Bank AG and Goldman Sachs International are the managers.

Afren is based in London and conducts its oil and gas exploration, development and production operations in African countries, including Nigeria, Gabon, Republic of the Congo, Ivory Coast and Ghana.

Doha Bank to bring bonds

On the horizon, Doha Bank is expected to sell bonds during the March 5 week following roadshows, which will begin on Thursday, according to a market source.

The bank is expected to hold investor meetings during the week of March 5.

The Doha, Qatar-based lender is the largest private commercial bank in the state of Qatar.

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