Global law firm Ashurst Perkins Coie has advised longstanding client the African Development Bank (AfDB) on a partial credit guarantee supporting the Arab Republic of Egypt's third Samurai bond issuance, comprising two tranches with an aggregate principal amount of 80 billion Japanese yen (approximately US$500 million). The issuance consisted of a 5-year AA+ rated tranche and a 10-year AA rated tranche, and was Egypt’s first sustainability Samurai bond.
The issuance builds on Egypt's track record as a pioneer among African sovereign issuers in the Samurai bond market and in sovereign sustainable financing. Proceeds are required to be allocated exclusively to eligible sustainable expenditures under Egypt's Sovereign Sustainable Financing Framework 2022, including investments in healthcare, education, renewable energy, energy efficiency and climate action. Notwithstanding heightened geopolitical uncertainty and increased volatility in the international capital markets, the bonds were successfully issued with strong credit ratings.
The transaction supports Egypt's continued access to long-term financing in the Japanese capital markets and represents another important milestone in the country's strategy to diversify the currency composition of its external debt and mobilise financing in support of its sustainable development priorities.
Relationship partner Tom Longmuir said: "We are delighted to have advised AfDB on this landmark sustainability Samurai bond issuance, which is another milestone in our long-standing relationship with AfDB. AfDB's AAA credit rating and partial credit guarantee played a catalytic role in facilitating access to long-term financing on competitive terms. The transaction demonstrates the keystone role of development finance institutions in mobilising private capital for African sovereigns, and plays to Ashurst's recognised strengths in structured multilateral credit support."
Commenting on the transaction, Tokyo capital markets partner Chihiro Ashizawa added: “Having advised on Egypt’s Samurai bond financings since its inaugural issuance, it is particularly rewarding to see this series of transactions continue to break new ground. As the first-ever Samurai bond issuance by an African sovereign to be directly supported by a guarantee from an African multilateral financial institution, this transaction has the potential to further broaden the path for African sovereign issuers seeking access to the Japanese capital markets. We are proud to have helped deliver this transaction successfully as one Ashurst Perkins Coie team, despite challenging market conditions.”
Ashurst Perkins Coie has a long-standing relationship with AfDB, led by relationship partner Tom Longmuir, and extensive experience advising multilateral development banks and development finance institutions on complex cross-border financings across Africa. The firm deployed a multi-office, multi-practice team in its role for AfDB, adding this transaction to its track record in development finance on the African continent.
The Ashurst Perkins Coie team was led by Tokyo partner Chihiro Ashizawa, working with relationship partner Tom Longmuir, and supported by Tokyo associates Chiharu Takatori and Saori Suga.
The issuance builds on Egypt's track record as a pioneer among African sovereign issuers in the Samurai bond market and in sovereign sustainable financing. Proceeds are required to be allocated exclusively to eligible sustainable expenditures under Egypt's Sovereign Sustainable Financing Framework 2022, including investments in healthcare, education, renewable energy, energy efficiency and climate action. Notwithstanding heightened geopolitical uncertainty and increased volatility in the international capital markets, the bonds were successfully issued with strong credit ratings.
The transaction supports Egypt's continued access to long-term financing in the Japanese capital markets and represents another important milestone in the country's strategy to diversify the currency composition of its external debt and mobilise financing in support of its sustainable development priorities.
Relationship partner Tom Longmuir said: "We are delighted to have advised AfDB on this landmark sustainability Samurai bond issuance, which is another milestone in our long-standing relationship with AfDB. AfDB's AAA credit rating and partial credit guarantee played a catalytic role in facilitating access to long-term financing on competitive terms. The transaction demonstrates the keystone role of development finance institutions in mobilising private capital for African sovereigns, and plays to Ashurst's recognised strengths in structured multilateral credit support."
Commenting on the transaction, Tokyo capital markets partner Chihiro Ashizawa added: “Having advised on Egypt’s Samurai bond financings since its inaugural issuance, it is particularly rewarding to see this series of transactions continue to break new ground. As the first-ever Samurai bond issuance by an African sovereign to be directly supported by a guarantee from an African multilateral financial institution, this transaction has the potential to further broaden the path for African sovereign issuers seeking access to the Japanese capital markets. We are proud to have helped deliver this transaction successfully as one Ashurst Perkins Coie team, despite challenging market conditions.”
Ashurst Perkins Coie has a long-standing relationship with AfDB, led by relationship partner Tom Longmuir, and extensive experience advising multilateral development banks and development finance institutions on complex cross-border financings across Africa. The firm deployed a multi-office, multi-practice team in its role for AfDB, adding this transaction to its track record in development finance on the African continent.
The Ashurst Perkins Coie team was led by Tokyo partner Chihiro Ashizawa, working with relationship partner Tom Longmuir, and supported by Tokyo associates Chiharu Takatori and Saori Suga.
