APA-Dakar (Senegal) – In 2024, Senegal became the fourth country in sub-Saharan Africa to tap the Eurobond market, after Benin, Côte d’Ivoire and Kenya.
After moments of uncertainty due to the political turmoil of the last three years, Senegal is once again regaining the confidence of the financial markets. On Tuesday 4 May, the West African country successfully raised $750 million, or nearly 450 billion CFA francs, on the Eurobond market, according to the financial information platform
Bloomberg.
The news provider reports that Senegal has become the fourth country in sub-Saharan Africa, after Benin, Côte d’Ivoire and Kenya, to use Eurobonds this year. This new $750 million debt has a maturity of seven years, i.e. until 2031.
Bloomberg points out that it was acquired in two tranches at a nominal rate of 7.75 percent. The initial $500 million was sold on Monday and increased by $250 million on Tuesday. JP Morgan Chase & Co. was the
lead manager for both tranches, according to data compiled by the platform, which notes that the bond sale shows that investors are gaining confidence in Senegal’s new government.
After a decade of fierce struggle against Macky Sall’s regime (2012-2024), the sovereign party PASTEF (Patriotes Africains du Senegal pour le Travail, l’Ethique et la Fraternite) came to power last March after 54.28 percent of the electorate voted for Bassirou Diomaye Faye, the party’s former secretary general.
The latter made his political mentor, the charismatic Ousmane Sonko prime minister after he was prevented from standing in the presidential election. Since then, they have worked in tandem, intending to bring about a number of changes in the management of public affairs over the next five years.
Senegal’s new leaders have pledged to pursue a policy of accountability before implementing governance based on transparency and better use of state resources.
This strategy seems to be appealing to investors, since “the indicator measuring sentiment towards Senegal
has moderated,” Bloomberg notes.
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