LONDON, Oct 15 – Gabon has raised $580 million through an eight-year Eurobond carrying a 9.375% coupon, with investor demand approaching $1 billion, as the Central African oil producer seeks financing amid efforts to strengthen its public finances.
The Finance Ministry announced on Wednesday that the order book was nearly twice the amount raised. It also said the bond’s risk premium was approximately 50 basis points lower than that of Gabon’s previous issuance in July, despite a longer maturity and rising US interest rates.
The transaction marks Gabon’s first Eurobond issued through a public offering since 2021, providing the government with access to international capital markets as it works to manage its financing needs and address fiscal pressures.
Finance Minister Thierry Minko led the bond sale and is representing Gabon at the IMF and World Bank annual meetings in Bangkok this week. His schedule includes bilateral discussions with financial institutions and investors.
IMF Programme Discussions
The bond issuance comes as Gabon moves toward negotiations over a potential IMF-supported programme, following its formal request for assistance in March.
An IMF staff team visited Libreville in September for technical discussions concerning the findings of a public debt audit and the government’s proposed fiscal policies for 2027. Formal programme negotiations are being prepared.
The discussions are expected to focus on public debt management and fiscal policy, as the government seeks to establish a framework for addressing its financing requirements.
For Gabon, the latest Eurobond provides access to external funding while negotiations with the IMF remain in preparation. The combination of international borrowing and potential Fund support forms part of the country’s broader financing strategy as it addresses fiscal challenges.
The strong order book indicates investor demand for the issuance, while the lower risk premium reported by the Finance Ministry suggests improved pricing relative to July’s transaction. However, the 9.375% coupon also reflects the substantial borrowing cost attached to the new debt.
