The Malian government has launched a public bond offering on the UEMOA (West African Economic and Monetary Union) financial market, seeking to raise up to CFA100 billion (approximately $165 million USD) by August 8.
The funds are earmarked for financing critical infrastructure projects outlined in the country’s 2025 budget.
The bond operation is structured into two tranches: CFA70 billion over a seven-year period, offering an interest rate of 6.55 percent. CFA30 billion over five years, at a rate of 6.35 percent.
The Société de gestion et d’intermédiation du Mali (Mali Management and Intermediation Company) is leading this fundraising effort, adhering to regional market regulations.
Debt concerns and financial viability
As of July, the Malian government had already secured CFA38.5 billion through previous market operations. However, former Prime Minister Moussa Mara has voiced concerns about what he describes as a “debt spiral.” He estimates that nearly CFA29 billion, or 75 percent of the recently raised amount, will need to be repaid next year, which could significantly strain the national budget. Mara highlights that public debt servicing costs now exceed the country’s civil servant salary expenditures.
Mali’s cumulative public debt is estimated to be over CFA6.8 trillion (approximately $11.2 billion USD), with more than half of this being domestic debt. This new bond offering, featuring longer maturities than traditional Treasury bills, indicates a growing need for more stable and long-term financial resources. Nevertheless, the rising cost of capital, combined with existing budgetary constraints, is fueling a broader debate over the country’s financial viability.
In a regional context still marked by sanctions, diplomatic tensions, and reduced external financing, Mali’s bond operation is being closely watched by investors. Its success or failure could send a strong signal regarding the state’s financial credibility in the West African market.
MD/ac/Sf/fss/abj/APA