Bond issue by Tecnicil property developer on Cape Verde exchange beyond expectations

8 March 2010

Praia, Cape Verde, 8 Mar – The placement of a bond issue by Cape Verde’s Tecnicil tourism property company has surpassed expectations, the president of the island country’s stock exchange stated.

Verissimo Pinto told Portuguese news agency Lusa on Friday that he had been to Lisbon twice to present the operation. The entire emission of more than 1.1 million bonds with a face value of 1,000 escudos (9.06 euros) was placed and will pay interest set at 7.5 percent per year, he said.

The operation lasted from 28 December to 26 February of this year and showed that demand exceeded supply, besides “going beyond the most optimistic expectations”, Pinto said, adding that Portuguese investors participated.

The Banco Africano de Investimentos (BAI) was responsible for most orders, as 80 percent of them came from that banking institution mainly led by Angolan state oil company Sonangol, he explained.

Pinto has been president of the Cape Verde Stock Exchange since it resumed operations in 2005 after a seven-year interval. It now quotes four companies, 13 bonds from private companies and 14 treasury bonds, he said.

Tecnicil is the biggest company with private Cape Verdean capital operating in tourism property development. It aims to use the issue to finance construction of the Vila Verde Resort in Santa Maria on Sal Island, which will be the first urban-style tourism complex with a full range of infrastructures on that island.