Allen & Overy experiences flurry of emerging market sovereign debt issues

Allen & Overy has 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, the law firm has advised on the largest emerging-market offering so far in 2013, with Russia’s landmark $7bn (£4bn) four-tranche issue, which attracted an order book of more than $16.5bn; the Republic of South Africa’s $2bn issue, which closed the same day as Russia’s transaction; and Romania’s €1.5bn issue, which was raised from the original $1bn target due to market demand.

These deals follow Allen & Overy’s work earlier in the summer on an undisclosed $1.5bn issue.

The law firm advised the Russian Federation on its four-tranche $7bn equivalent Rule 144/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 Philips Smith and Jim Wickenden, with support from associates Clark Gard, Paul Kleist and Diane d’Almeida.

Allen & Overy advised Romania on its issue of €1.5bn 4.624 per cent notes due in 2020 under the €8bn (£7bn) 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.

The law firm also advised Deutsche Bank Securities, Rand Merchant Bank, Standard Bank and Investec Bank as underwriters on the $2bn Securities Exchange Commission-registered sovereign debt issuance by the Republic of South Africa. The team comprised US capital markets partner Sachin Davé and associate Clark Gard.