Lehman Brothers Raise Usd 200 Million In Bonds For Seychelles ff

President of the Seychelles James Michel is proud that a small country like Seychelles has the credibility to generate interest in a bond to raise $200 million overseas. He said this on Wednesday upon his return from a busy week of visits in Europe where he met investors. It was during his visit in London that he learned that the bond issue for Seychelles had generated interest worth $383 million – oversubscribed by almost double – but the government decided to cap it at $200 million to keep it within the scope of its economic plan.

Lehman Brothers, which have the majority share in the Indian Ocean Tuna cannery in the Seychelles, and also is the major shareholder of MW brands – which owns the former activities of Heinz Seafood Europe, was appointed as the lead manager of the bond issue.

“This is a very positive development,” he said of the capital generated.

“I am proud that a small country like Seychelles has been able to attract interest and has the credibility to raise that amount of money,” the President added.

Seychelles conducted road shows in capitals around the world, including Singapore, Hong Kong and also London, to publicize the bond.

He said during the press conference at the airport that the Minister for Finance, Danny Faure, would go to the National Assembly next week to give the details of the process to start the liberalization of foreign exchange transactions.

“I’ve asked my Minister for Finance next week to go to the National Assembly and give the details of the mechanism we will use to start the process of liberalization of foreign exchange,” President Michel told the media.

Following the success of the bond the President is thanking the staff of both the Ministry of Finance and the Central Bank, especially the young professionals of the organizations, for their competence and preparation in the realization of the 200 million-dollar capital.

“We are very happy with the work of our young professionals,” he said.

The $200 million raised from the issue of bond will help Seychelles restructure its debts and boost reserves. Following debt restructuring talks with the African Development Bank (ADB) on 3rd October, during the coming days and weeks meetings will be held with the European Investment Bank, Tokyo Mitsubishi, Paris Club creditors and other financial institutions.

“We’ll also use part of that money to boost our reserves and then start the process of liberalization of foreign exchange. Of course this will be done over time,” President Michel explained.

The President announced that Lehman Brothers, the company appointed as the lead manager of the bond issue, indicated that it would look at possibilities of further investment in fish processing in Seychelles. Mr Michel said the company would send a delegation to Victoria in November to look at new investments potential. The company, which now owns the majority share in Indian Ocean Tuna (IOT), could triple its investments in our country.

During the meeting with Lehman Brothers the President also discussed the welfare of Seychellois employees at IOT.

Also in London, Mr. Michel met with representatives of other financial institutions including Barclays and Standard banks.

“There was a lot of interest and confidence in the future of the economy of Seychelles and the two banks will soon send delegations here to study the possibilities of how to increase their operations here,” President Michel said.