(Ecofin Agency) – The operation, which will mark Benin’s fourth exit on the international market after those of 2019, 2021 and 2024, should allow the West African country to diversify its sources of financing.
The Beninese government began a roadshow in the United Kingdom on Wednesday January 8 to promote the issuance of a new Eurobond with a reference size ($500 million) and a maturity of 16 years.
Banking groups Citigroup, JP Morgan Chase and Société Générale have been hired to organize virtual and in-person meetings with investors in London, according to information reported by Bloomberg.
« Benin returns to the Eurobond market to take advantage of positive market conditions and diversify its sources of financing in a context of solid investor appetite for the debt of emerging countries and in particular for African issuers “, said Ousseynou Diagne, head of the Debt Capital Markets division for Africa at the French group Société Générale.
According to Mark Bohlund, principal analyst at the research and consulting firm REDD Intelligence, the West African country should obtain a coupon of around 8%, a rate close to that which it had been offered. during its last exit on the international debt market in February 2024 (7.96%).
Last October, US rating agency Standard & Poor’s (S&P) upgraded the outlook for Benin’s long-term foreign currency credit rating (BB-) from stable to positive, citing strong economic growth supported by structural reforms, rigorous budgetary management and sustainable public debt.
Benin has already issued bonds denominated in euros in 2019 (500 million euros) and in 2021 (1 billion euros) as well as bonds denominated in US dollars in February 2024 (750 million dollars). During its last issue, the country saw the order book for its international bonds reach 5 billion dollars, or ten times the amount initially proposed.
-Walid Kefi
Also read:
07/02/2024 – Benin raises $750 million on the debt market repayable over 14 years for an interest rate of 7.9%
10/23/2024 – S&P maintains Benin’s rating at “BB-”, with a “positive” outlook
07/17/2021 – Benin raises €500 million to achieve its SDGs thanks to a new Eurobond oversubscribed almost 3 times
12/03/2019 – Benin could soon issue its first Eurobonds on the international debt market
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