Senegal announced on Monday the launch of private placement bonds with investors on international capital markets, raising $750 million, or more than 45 billion CFA francs, according to the Ministry of Finance and Budget.
According to a press release, the State has mandated JP Morgan London to mobilize resources of $500 million aligned with its debt management strategy. The issue began on Monday June 3 with the additional issue of $250 million on June 4, following investor enthusiasm.
These bonds, issued in US dollars at a nominal interest rate of 7.75% over a period of 7 years, were simultaneously converted into euros at an average rate of 6.47% to further optimize debt service, according to the ministry.
The success of this transaction underlines the strong support of investors for Senegal’s public policy financing initiatives, attesting to their renewed confidence in its signature quality, indicates the same Source.
This private loan, a first for Senegal, is part of a policy of diversification of financing instruments and active debt management, in accordance with the country’s medium-term debt strategy.
The press release reports that this innovative operation is marked by a short execution time, a significant volume of resources, and advantageous financial conditions, offering an alternative to the domestic market, whose current profile would not have made it possible to mobilize such an amount. .
The results of this fundraising reinforce Senegal in its status as a benchmark issuer, thanks to the quality and credibility of its economic policy.
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