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(Ecofin Agency) – Senegal has successfully raised $750 million through its latest Eurobond issuance, marking its fourth such operation this year among sub-Saharan countries. The bond, maturing in 2031, underscores growing investor confidence in its emerging oil and gas economy under new leadership.
According to Bloomberg, the issuance was split into two tranches—$500 million and $250 million—with an interest rate set at 7.75% over 7 years. The reasons behind this fundraising were not specified, but it comes amid efforts by President Bassirou Diomaye Faye and Prime Minister Ousmane Sonko to implement their economic and political agenda.
Analysts view this achievement as a vote of confidence in Senegal, despite pre-election disruptions earlier. Compared to recent Eurobond offerings by Benin (7.9%) and Kenya (10.37%), Senegal secured a lower interest rate. However, Côte d’Ivoire remains the top performer with a 6.61% rate for its $2.6 billion issuance in January.
Senegal is expected to become a major player in sub-Saharan Africa’s oil and gas sector this year, following significant discoveries over the past decade. This development is expected to boost the country’s growth to 8.3% this year, according to the IMF.
President Diomaye Faye, elected on a platform of reforms, aims to overhaul public finances by reducing debt burdens and renegotiating previous administration’s resource contracts. The new administration plans to leverage its natural resources to achieve these goals effectively.
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