State energy company Sonatrach announced on 9 December that BanqueExterieured'Algerie( BEA) has been selected to lead manage its forthcoming bond issue. The AD 5,000 million ($72 million) bond is expected to be issued in January. The paper has a launch price of AD 104.6 ($1.5) and a coupon of 2.99 per cent.
Four local institutions have subscribed to the bond. They are CaisseNationaleAlgerienned'EpargneetdePrevention(CNEP), CaisseNationaled'AssuranceChomage(CNAC), CompagnieAlgeriennedesAssurances(CAAT) and BEA (MEED 5:12:03). The bond, which is expected to attract sufficient interest for secondary market trading, will mature on 10 December 2008.
Funds raised by the issue will be used on research and development projects.
Sonatrach launched its first five-year bond in 1997. Heavy demand saw the issued raised to AD 12,000 million ($172 million) from AD 5,000 million ($72 million).
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