Senegal has successfully raised $300 million by reopening a bond initially issued in June, aimed at addressing financing needs for the 2024 budget. This development follows the International Monetary Fund’s (IMF) decision to postpone disbursements due to concerning findings from an audit, as reported by the finance ministry on Wednesday.
The bond, privately placed and maturing in 2031, features a hedge against foreign exchange fluctuations, allowing the government to secure an interest rate of 6.33%. JP Morgan fully underwrote the transaction.
The Senegalese government opted against requesting the IMF disbursement after the audit revealed that the country’s debt and budget deficit were significantly higher than previously reported by the former administration. In light of this, the government plans to enter discussions with the IMF to establish a new program focused on stabilizing the macroeconomic framework.
The decision to reopen the international bond was prompted by a decline in liquidity within the domestic market. The finance ministry stated that this fundraising effort reaffirms Senegal’s commitment to transparency and strengthens its reputation as a credible issuer in the eyes of international investors.
