KINSHASA, Feb 12 – The Democratic Republic of Congo plans to issue its first international bond worth about $750 million as the government seeks to access global capital markets.
Finance Minister, Doudou Fwamba Likunde said in London that the government want to enter the international market to raise funds and establish a yield curve that could also support private sector borrowing.
He said the timing of the bond sale will depend on market conditions. The central bank governor indicated last month that the issuance could take place around April.
Congo has considered an international bond for several years. The country has faced delays linked to internal conflict and investor concerns. The planned issuance would mark its debut in global debt markets.
The government will use proceeds from the bond to finance infrastructure projects, including the modernization of N’djili International Airport, road rehabilitation in Kinshasa, hydropower plants and rural infrastructure, Likunde said.
S&P Global Ratings affirmed Congo’s B- credit rating earlier this year and assigned a positive outlook. The country’s external debt stands at 18.5 percent of gross domestic product, with about 95 percent borrowed on concessional terms, according to official figures.
Copper prices have risen about 30 percent over the past 12 months, according to market data. Congo is one of the world’s leading producers of copper and cobalt.
Likunde also said the U.S. International Development Finance Corporation committed $530 million in direct financing for the Lobito Corridor railway project. The project will connect mining regions in Congo, Angola and Zambia to the Atlantic coast. He said authorities will select the private company to operate the project through a tender process.
The government said it will continue discussions with investors ahead of the planned bond issuance.
