Quick Summary:
-
Senegal raised $644 million, exceeding its bond target by over 21%.
-
The issuance followed a debt audit showing public debt at 118% of GDP.
-
S&P downgraded Senegal’s rating to B- due to rising debt levels.
-
Proceeds will support economic recovery and banking sector liquidity.
Senegal has raised 364 billion CFA francs (approximately $644 million) in a local-currency government bond issuance, exceeding its initial target of 300 billion CFA francs, the Ministry of Finance announced. The bond sale was conducted through the West African regional market platform, UMOA-Titres.
Bond Sale Follows Debt Concerns and Credit Downgrade
The issuance came shortly after an audit revealed that Senegal’s debt had reached 118% of GDP in 2024, significantly higher than previously reported. In response, S&P Global Ratings downgraded the country’s long-term foreign-currency rating to B- on July 14, citing concerns over fiscal sustainability.
Purpose: Economic Revival and Fiscal Optimization
According to the Ministry, the proceeds from the bond sale will be used to:
- Stabilize public finances
- Revive economic activity
- Optimize the country’s debt servicing profile
- Improve liquidity in the banking sector
The bonds, eligible for refinancing, are seen as a strategic move to inject confidence into the domestic financial system.
Deal Managed by CGF Bourse and Société Générale Sénégal
The transaction, launched on June 19 and closed on July 8, was led by CGF Bourse as the principal manager, with Société Générale Sénégal acting as co-lead.