Zambia seeks legal advisor sovereign bond

By Kabanda Chulu
 GOVERNMENT has issued a request for expressions of interest to engage an international legal advisor and lead manager for Zambia's first sovereign bond (US$500 million) issuance on the international capital market.

According to the expressions of interest (EoI) seeking financial and transaction details that will close this Friday, Zambia intends to access the international capital market through the issuance of an indicative US$500 million sovereign bond.

"In this regard, the Ministry of Finance wishes to engage the services of an international law firm to provide legal advisory services for the bond issuance process and the law firm is expected to conduct due diligence, draft and review documentation for the issuance, including the prospectus and related documentation," it stated.

"Advise the issuer on US and European securities law relating to disclosure, liability and placement issues as they arise; Advise the issuer and assist with negotiating contractual arrangements with lead managers (book runners); prepare and coordinate legal and disclosure opinions to be given in connection with the issue; Coordinate all approvals in accordance with international and Zambian law; Coordinate with the Republic's Attorney General regarding the above; and Perform such other services as may be mutually agreed between the law firm and the Republic."

It stated that prospective bidders should demonstrate verifiable track record over the past five years in providing legal advice for sovereign bond issuances in emerging markets, including debut issuance; duration and extent of the firms' relationship with securities industry regulators in the United States, the United Kingdom and Europe.

"…A deal list reflecting the firm's sovereign finance transaction in the last five years, with particular emphasis on the emerging markets and the international law firm will be selected in accordance with the Zambia Public Procurement Authority (ZPPA) guidelines," it stated.

The EoI further stated that the government intends to engage the services of two suitably qualified financial institutions to provide book runner services for the bond issuance process.

It stated that prospective bidders should demonstrate verifiable track record over the past five years in lead managing emerging markets sovereign bonds issuances.

"This should include debut issues; minimum of two investment grade ratings from internationally recognised rating agencies; description of presence in major global financial centres," stated the EoI.

" Evidence of registration with relevant regulatory authorities in the international capital market, company profile including registered address, phone and fax numbers and email address; experience in providing secondary market trading for emerging markets sovereign bonds; and willingness to transfer knowledge to local institutions."