A&O records impressive USD12.5 billion emerging markets sovereign debt run as tapering put on back burner

02 Oct, 2013

Allen & Overy LLP said today it had seen a flurry of emerging market sovereign debt issues in recent weeks as the Fed’s decision to postpone the start of tapering its quantitative easing programme had opened the window for emerging market sovereigns.


In the past few weeks Allen & Overy had advised on the largest emerging market offering so far in 2013 with Russia’s landmark USD7bn four tranche issue, which attracted an order book of over USD16.5bn; the Republic of South Africa’s USD2bn issue, which closed the same day as Russia’s transaction; and Romania’s EUR1.5bn issue, which was raised from the original USD1bn target due to market demand. These deals follow A&O’s work earlier in the summer on an undisclosed USD1.5bn issue.


Commenting, Allen & Overy international capital markets partner Philip Smith said: “We are seeing a very active period in the market at the moment as is evidenced by the strong demand for these sovereign issues. With the Fed putting tapering on hold, pricing for debt remains attractive with a number of issuers keen to get to market prior to the Fed deciding to signal the start of tapering.”


Allen & Overy advised the Russian Federation on its four tranche USD7bn equivalent Rule 144A/Reg S offering. The transaction was led out of Allen & Overy’s Moscow office by partner Alexandra Fasakhova and counsel Cameron Half, with support from associates Maria Egorova, Maria Dedova, Natalia Antsiperova and others.  The London team was led by partners Philip Smith and Jim Wickenden, with support from associates Clark Gard, Paul Kleist and Diane d’Almeida.


Allen & Overy advised Romania on its issue of EUR1.5bn 4.624 per cent notes due 2020 under the EUR8bn Global Medium Term Note programme. Partner Philip Smith led the team with assistance from Anne Neumann. The RTPR team providing local advice in Bucharest was led by Mihai Ristici, with assistance from Andreea Burtoiu and Poliana Naum.


Allen & Overy advised Deutsche Bank Securities, Rand Merchant Bank, Standard Bank and Investec Bank plc as underwriters on the USD2bn SEC registered sovereign debt issuance by the Republic of South Africa. The Allen & Overy team was comprised of U.S. capital markets partner Sachin Davé and associate Clark Gard.

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