The Republic of Congo had two existing sovereign bonds totalling 1.55 billion dollars admitted to listing on Monday, 19 October, the exchange announced the UAE exchange. Already listed in London, the securities now have an additional trading venue in the Middle East.
The transaction concerns the secondary market, where investors trade bonds already issued. The 1.55 billion dollar figure therefore refers to the two bonds admitted to listing, not to funds newly paid to the Congolese state.
The first line represents 700 million dollars, with a final maturity on 17 February 2035. The second totals 850 million dollars and matures on 26 May 2036. Both carry a nominal coupon of 9.5% and provide for amortisation of principal, that is, gradual repayments rather than a single payment at the final maturity.
According to Nasdaq Dubai, Congo becomes the first African state to list sovereign securities on the exchange. The Congolese Minister of Finance, Budget and Public Portfolio, Christian Yoka, attended the opening ceremony of the market organised for the admission.
The minister presented the listing as part of efforts to diversify the investors holding Congolese debt. The exchange highlights access to institutional investors, banks and companies in the Middle East, in addition to the initial listing on the London Stock Exchange.
Nasdaq Dubai says the outstanding amount of debt securities listed on its platform now exceeds 147.5 billion dollars, of which 43% are sovereign issues.