Gabon and on and on

Central Africa’s Gabon did what no other African sovereign has done this week when it completed a debt-for-nature swap which included the first ever blue bond from the African continent.

But the deal did not come without its intricacies, as the deal relied on insurance from the US International Development Finance Corp, meaning that the usually Caa1/B- rated country was now selling Aa2 rated debt.

It took a couple of attempts to get the deal right, after the sovereign postponed the deal last week because of rates volatility. We delve into what it took to get such a deal over the line.

Meanwhile, all guns are blazing in the FIG market, with multiple deals priced this week. One of the standouts was an additional tier one capital trade from BNP Paribas in dollars, the first such deal in the currency since Credit Suisse sent shockwaves through the AT1 market on its collapse.