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Congo Plans Oil Bonds to Refinance Glencore, Trafigura Loans

  • Country has hired Deutsche Bank, Citi to structure the deal
  • Congo owes about $2 billion to commercial creditors: IMF

The Republic of Congo plans to issue Eurobonds linked to oil warrants to refinance its outstanding debts to commodity traders Glencore Plc and Trafigura Group, according to people familiar with the plans.

The deal, expected to launch later this month, is structured as a “debt-neutral” transaction, meaning it will be solely used to refinance about $1.4 billion of the oil traders’ loans and won’t impact the nation’s debt load, the people said, asking not to be identified because the matter isn’t public. Citigroup Inc. and Deutsche Bank AG are structuring the bond, while financial advisory firm Rothschild & Co. is working with the government, they said.