(Ecofin agency) – Despite the recent deterioration of its sovereign note, the signing of Senegal continues to attract regional investors. The West African country plans to raise 90 billion FCFA in mid-April via the public securities market by adjudication.
The Senegalese public treasury closed on Thursday April 10 in anticipation, its bond borrowing by public appeal to savings (APE) launched on Thursday, March 27. Initially scheduled to extend until April 26, the operation was raising a lifting of 150 billion FCFA (around 259 million USD). In two weeks, investors served for a cumulative amount of FCFA 405 billion, almost three times the initial objective.
The proposed securities offered yields between 6.40% and 6.95% depending on maturity, and will be listed on the Regional Securities Stock Exchange (BRVM). This rating will allow secondary liquidity, in particular for institutional investors looking for stable yields.
This massive mobilization occurs in a context of increasing pressure on the public finances of Senegal. An audit of the Court of Auditors published in February revealed that public debt reached 99.67% of GDP, and that the budget deficit for 2023 amounted to 12.3%, figures significantly higher than previous estimates.
These revelations have led the rating agencies Moody’s and Standard & Poor’s to lower the sovereign note of the country respectively to B3 and B, with negative perspectives. Consequence: disbursements within the framework of the support program of 1.8 billion euros concluded with the IMF in 2023 are currently suspended.
The amount actually retained by the Treasury was not communicated at this stage. This operation could however influence the conditions of the next programs provided for in the Union. With its current situation, the Senegalese state is relying more and more on domestic markets.
In addition to the APE closed in April, the country has already mobilized more than 361 billion FCFA this year via the public securities market by adjudication, managed by the UMOA-Titres agency. He plans to lift another 90 billion FCFA on April 14 on the adjudication segment.
Wish M. Kakpo
Edited by: Feriol Bewa
