LIBREVILLE, Oct 1 – Gabon is preparing to return to international debt markets with a planned $580 million dollar-denominated bond, only two months after raising $920 million through a eurobond issuance, Bloomberg news reported on Wednesday, citing a person familiar with the transaction.
The government has appointed BofA Securities as sole lead manager to arrange a series of fixed-income investor meetings beginning Wednesday. The planned bond is expected to have an eight-year final maturity.
The latest issuance comes as Gabon seeks additional financing while discussing a potential new funded programme with the International Monetary Fund (IMF). The country’s previous $553 million IMF arrangement was suspended following the military coup in August 2023.
Debt Outlook and Fiscal Pressure
Gabon’s financial assets have recently responded to changing assessments of its fiscal position. An audit published earlier this month indicated that the country’s public debt was approximately 20% lower than previously estimated.
However, investor sentiment subsequently came under pressure after the draft budget for next year proposed raising approximately 1.1 trillion CFA francs, or $1.9 billion, from international capital markets to help finance the budget deficit.
The proposed borrowing programme could increase financing needs at a time when Gabon is seeking to manage its fiscal position and re-establish a stronger relationship with international lenders.
Gabon’s existing dollar bonds have reflected the changing outlook. The country’s 2031 notes fell for a sixth consecutive session, declining 1.2 cents to 84.3 cents on the dollar at 12:26 p.m. in London.
The 2029 bonds also declined for a seventh straight session, falling 0.7 cent to 94.4 cents. The planned $580 million issuance will therefore come against a backdrop of renewed borrowing needs, ongoing discussions with the IMF and investor reassessment of Gabon’s fiscal and debt trajectory.
