Ghana’s ESLA Bond wins global award

The 2017 Europe, Middle East, Africa (EMEA) Finance Achievement Awards has adjudged ESLA Plc as the best restructuring deal last year.

Ghana government set up ESLA Plc as the special-purpose vehicle mandated to raise money to clear outstanding energy sector debts.

ESLA Plc is part of nine transactions across the EMEA that have been tipped for this year’s awards.

EMEA Finance, organisers of Achievement Awards, announced winning deals and dealmakers of 2017 in its 10th Anniversary Awards package.

The entries were nominated by banks and other clients while the winners were chosen by EMEA Finance editorial team.

The organisers believe the transactions exemplify the innovative work taking place in capital markets in Europe, Middle East and Africa.

“We congratulate all of our winners on their achievements, landmark transactions, and important financings provided to the region’s leading companies and sovereigns,” the announcement said.

List of other EMEA award winners

The best refinancing went to Kemerköy Yeniköy lignite-fired power plants TL3. 3bn loan while ICF Antalya Airport refinancing package grabbed the best refinancing in CEE.

Other winners are Mobily’s SAR 8bn refinancing - best refinancing in the Middle East; Coca-Cola Sabco East Africa’s loan facilities - best refinancing in Africa; Budapest Airport’s €1.39bn loan and note debt facilities - best repricing; Saint Nikola Wind Farm’s €117mn amended debt profile - best restructuring in CEE; Tasnee’s SAR2.9bn syndicated Islamic loan facility - best restructuring in the Middle East; and Avesoro Resources’ acquisition of New Liberty gold mine - best restructuring in Africa.

ESLA Plc set up in 2017

ESLA Plc, in 2017, set out to raise GH¢6 billion for the first tranche of the GH¢10 billion debt.

The managers of the transaction eventually raised some GH¢4.7 billion.

ESLA PLC successfully closed its books for the issue of the ESLA bonds on Friday, November 3, 2017, after extending the timeline for the issue of the 10-year bond by one week.

Investors may recall that ESLA Plc successfully closed its books for the issue of the seven-year bond on Friday, October 27, 2018, and accepted GH¢2.42 billion of the seven-year bonds at a final yield of 19%.

A book size of over GH¢2.79 billion was realised for the 10-year bonds, with coupon rates ranging between 19% and 20%, out of which bids amounting to GH¢2.29 billion were accepted at a final yield of 19.5%.

Total bids tendered for both auctions amounted to GH¢5.32 billion; GH¢4.70 billion was accepted under the GH¢10 billion ESLA Bond programme.

The bonds which were issued as the first tranche under the bond programme comprised of seven-year (GH¢2.4 billion) and 10-year (GH¢2.29 billion) bonds carrying coupons of 19.5% respectively.

Though the ESLA bond is a new asset class, the pricing was very tight and compares favourably with local currency government issues.

Whereas ESLA Plc went to market with an initial target amount of up to GH¢6 billion out of the GH¢10 billion programme for the first tranche, the issuer, in consultation with the Transaction Advisors, made a decision to decline offers in excess of its price target.

Given that this is a programme, future issues will be undertaken subject to favourable market conditions and adequate levels of Energy Debt Recovery (EDR) Levy flows.

Subsequent issuances will continue until the total outstanding legacy debts and other obligations due suppliers and other creditors within the energy sector have all been settled.

ESLA Plc, the issuer, shall ensure that EDR Levies are monitored and collected in a timely manner to ensure that all bond covenants are met in accordance with the prospectus. Bondholders will be paid from EDR Levy receipts assigned to ESLA Plc.

All financial flows will be published in addition to financial statements that will be audited by independent auditors on the ESLA Plc website at www.eslaplc.com.

GH¢615 million raised in January 2018

In January 2018, ESLA Plc raised additional GH¢615 million (GH¢615,947,860) through the 10-year bond that it reopened.

The bond, which was reopened on Monday, January 22, 2018, and closed on Wednesday, January 24, 2018, targeted between GH¢100 and GH¢130 million from the market.