In a whirlwind three-day international promotion, Benin secured €1 billion in financing equivalent to approximately 6.6% of its Gross Domestic Product (GDP).
The West African nation successfully completed a dual financing operation. First, it issued a 16-year international bond for $500 million.
“The strong interest in this dollar-denominated operation resulted in an order book of approximately $3.5 billion on the day of issuance, representing a subscription seven times higher than the amount sought,” the government announced in a statement released on Friday.
This bond issue has “euro coupon of 6.48%” and represents an improvement on the conditions obtained in February 2024 with an average maturity extended by three years.
Simultaneously, Benin concluded a €500 million 15-year loan with Deutsche Bank at a rate of 6%. This operation benefits from a partial guarantee of €200 million from the International Development
Association (IDA), a first since the launch of the World Bank’s guarantee platform in July 2024.
This financing will notably be used to repurchase part of the country’s 2032 Eurobond, extending the average maturity of public debt, while generating savings that will finance projects related to the Sustainable Development Goals.
“Through this dual operation, Benin consolidates its reputation for rigorous and innovative management of public debt, while strengthening its financial resilience,” the government emphasizes. The operations are expected to be finalized by the end of January.
This record fundraising, achieved in just three days of promotion to more than 60 international investors, demonstrates the confidence of the markets in Benin’s economic strategy.
ARD/te/sf/lb/gik/APA