There are plenty of investors who specialise in emerging markets, and plenty more with an appetite for energy exploration and production (E&P). When it comes to the bond markets, however, these interests do not overlap very often. They did with an inaugural high-yield bond issue from Afren, an E&P company whose business is almost entirely focused on Nigeria. It was the first non-financial corporate bond ever issued by a sub-Saharan African business, and a rare high-yield bond from a European-listed E&P firm.
Afren is quoted on the London Stock Exchange but describes itself as a “pure play African oil and gas company”. Founded by former investment banker Osman Shahenshah in 2004, it has acquired assets in 11 African countries, including Côte d'Ivoire, the Republic of Congo, Ghana and Ethiopia. But almost all of its current production, including the Ebok offshore development now coming on stream, comes out of Nigeria.
