International law firm Freshfields Bruckhaus Deringer has advised on South African power utility Eskom’s $1bn bond, issued under Eskom’s newly established $4bn global medium term programme. Eskom generates, transmits and distributes electricity to industrial, mining, commercial, agricultural and residential customers and redistributors across southern Africa.
The new bond is a senior, unsecured 6.75% global bond that will be due for maturity in 2023. Freshfields advised the joint mandated lead arrangers and managers, Barclays and Citigroup.
Partners Peter Allen and Stuart Grider and senior associate Nick Hayday led the Freshfields international debt capital markets team advising on the transaction. Bowman Gilfillan advised the banks on South African points of law.
Peter Allen, co-head of Freshfields’ international capital markets group, said, ‘African bonds are growing in number and quality and increasingly being seen by both sovereign and corporate issuers as viable options for cost-effective and long-term access to funding. This successful bond issue is also a sign of growing international investor confidence in Africa as they seek higher yields than those offered by developed markets.’
Co-head of Freshfields’ Africa group, Shawn der Kinderen adds, ‘The strong international investor demand for this bond issue is a signal of the rapidly improving perception of the growth opportunities offered by Sub-Saharan African countries and markets.’
