Senegal: IMF confirms plans of second Eurobond sale of $500 million

Jun 27, 2013

The IMF has announced that Senegal could soon issue $500 million (around €384 million) Eurobonds of 10-year maturity.

The IMF
has
announced that Senegal could soon issue $500 million (around €384 million) Eurobonds of 10-year maturity.

This loan is part of the Finance Act 2013 with a budget of $541 million.
"The new bonds will be issued to fill the funding gap and improve the overall profile of the public debt", the IMF said.

Indeed, Senegal hopes to get an interest rate close to six per cent on this medium-term maturity, lower than the rate on its first Eurobonds issue of 8.75 per cent.

The government's arguments in favour of this operation include: a "bonus" to a democratic consolidation, with the election in 2012 of President
Macky
Sall; the country's good credit standard, good opinion of the IMF;
macroeconomic
stabilization; a consolidation of the business climate and prospects of poverty reduction as well as job creation for young people and women.

Standard & Poor's confirmed in July 2012 the notes of B+ for long-term debt and B for short-term paper, with a negative outlook.
In July 2012, Moody's maintained its rating of "B+ with a stable outlook."
Since 2007, nine sub-Saharan countries have issued approximately $6
billion of Eurobonds.

Recently, Rwanda has raised $400 million at a rate slightly below 7%, Tanzania $600 million and Zambia $750 million. Several other countries plan to issue on international markets in coming months, including Kenya and Ghana.ADNFCR-2976-ID-801604950-ADNFCR