Senegal 'plans international bond offering'

Dec 11, 2009

The Senegalese government is set to put bonds available for purchase in the international capital market.

Looking to raise some $200 million (8.88 billion communaute financiere africaine francs) from the sale, the move will see the country will be the first sub-Saharan Africa nation to sell bonds to international investors in around two years.

Speaking to the Wall Street Journal, Francois Ekam-Dick, Managing Director of Iroko Securities, pointed out that the move "will be closely watched for how international investors respond to a deal from sub-Saharan Africa".

According to him, if things went well, more countries from the region - including Cameroon, Mali, Uganda and Benin - could turn towards international capital markets as a means of diversifying domestic financing.

Meanwhile, Samir Gadio, Analyst at Lagos-based Renaissance Capital, suggested to Bloomberg that the five-year bonds will be set at a yield of around 8.75 per cent.

The move comes as it was revealed earlier this week that Belgium is to increase financial aid given to Senegal by 60 per cent in 2010.