Botswana Mulls First International Bond Issue
by Robert Lee, Tax-News.com, London
21 November 2003

Baledzi Gaolathe, Botswana’s Minister of Finance, has indicated that the country is ready to issue its first international bond in 2004 after the success of its maiden sovereign debt issue.

Speaking to Reuters during the OECD global investment forum in Johannesburg, the Finance Minster said the government plans to look into the possibility next year, stating the minimum size of the issue is likely to be $250 million.

"It (a global bond issue) will put Botswana on the international map. We should take advantage of our favourable ratings," said Gaolathe who told Reuters the proceeds will be used to "deepen our capital markets."

Last week, ratings agency Standard & Poor’s affirmed Botswana’s A-1 short and long-term currency ratings, assigning a ‘Stable’ outlook. One of Africa’s rare economic success stories, it is the only country in sub-Saharan Africa to have attained ratings from the major agencies.

Also, Moody’s Investors Services recently confirmed the country’s stable economic outlook which it said reflect sustained economic growth and an extremely favourable debt and liquidity position.

In March this year, Botswana undertook its first government bond issue of which around 1.75 billion Pula ($384 million) has been sold to date. The government hopes this will reach 2.5 billion Pula by the year’s end.

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