Allana pleased with Ethiopia's eurobond offering
Allana pleased with Ethiopia's eurobond offering
2014-12-15 07:23 ET - News Release
Mr. Farhad Abasov reports
INAURGURAL ETHIOPIAN EUROBOND ISSUE A SUCCESS- POSITIVE IMPLICATIONS FOR ALLANA POTASH
Allana Potash Corp. is encouraged by the successful $1-billion (U.S.) eurobond issue (10-year) recently launched by the Ethiopian Ministry of Finance. The sovereign debt offering was oversubscribed and was priced to yield 6.625 per cent, below its original benchmark rate of 6.75 per cent. This marks a first for Ethiopia in the eurobond market, and strong demand for the issue means the country will likely be able to tap these markets going forward to meet some of the financing needs of its fast-growing economy. The proceeds of the offering will be used for key infrastructure projects in the country, including its national railway, hydroelectric power projects, and industrial expansion of key agricultural products and services.
Farhad Abasov, president and chief executive officer of Allana, commented: "The recent successful, oversubscribed Eurobond sovereign debt offering by the government of Ethiopia is applauded by Allana Potash. This is a testament to the growing economic and cultural stature of Ethiopia within Africa and the rest of the world. Ethiopia has made great strides over the past decade to improve its economic and social standing in the world, while improving the quality of life for all its citizens."
Mr. Abasov added: "This next step in Ethiopia's development as a nation also translates into positives for industrial and social development in the country and for private sector investors like Allana Potash:
- In infrastructure development financing for critical road, rail and power facilities to support industrial development projects, such as Allana's Danakhil potash mine;
- In agricultural improvement investments to grow the backbone of the country's economy and demand for nutrients such as Allana's potash;
- In the derisking of Ethiopia as an investment destination for domestic and international financial institutions, resulting in lower lending rates and greater project debt capacity in the country for the benefit of all development projects raising debt, such as ours.
"Allana Potash plans to become the centre point in Ethiopia and in East Africa in the supply of this most critical of all soil nutrients, potash, to the region's fast-growing agricultural sector."