DAKAR, Mar 30 – Senegal has raised 304 billion CFA francs, ($537 million dollars) from a public bond issue, surpassing its initial target by more than 50%, according to the finance ministry.
The government had aimed to raise 200 billion CFA francs, but strong demand from both retail and institutional investors pushed subscriptions well beyond that mark.
The offer, which ran for a month until March 26, reflects continued reliance on regional and domestic debt markets as the country navigates funding constraints.
Senegal has increasingly turned to local borrowing since a debt misreporting case strained its ties with international lenders, including the International Monetary Fund. The issue has effectively limited access to external financing, prompting authorities to explore alternative funding sources to meet budget needs.
The latest bond issuance was structured across four maturities, ranging from three years at an interest rate of 6.40 percent to 10 years at 6.95 percent. The spread of tenors was designed to attract a broad mix of investors while balancing short- and long-term financing requirements.
Officials said the oversubscription signals investor appetite for Senegalese debt despite ongoing scrutiny over its fiscal reporting. However, questions remain around previous financial operations, including the use of Total Return Swaps in seven transactions between April and November last year.
These deals have drawn attention from market participants and international partners, complicating efforts to rebuild credibility and secure a new IMF programme. For now, the successful bond sale provides short-term funding relief, while authorities continue discussions aimed at restoring access to external financing channels.
