Senegalese Government Launches Bond Issuance to Raise 200 Billion CFA Francs
The Senegalese government launched its first public bond issuance of the year on Thursday, aiming to raise 200 billion CFA francs (approximately $362 million). Following a crisis of poor communication regarding the actual size of its debt, which remains unresolved, Dakar has opted to rely on regional financing. Access to International Monetary Fund (IMF) financing remains blocked.
Background
The multilateral financial institution suspended its three-year, $1.8 billion program in 2024 after a new administration discovered billions of dollars in undeclared debt. As a result, Senegal's debt burden reached 132% of its gross domestic product by the end of 2024. The government and the IMF are currently working to resolve the issue and develop a new program.
Reliance on Regional Bond Market
Since last year, the country has been relying on the regional bond market, as well as securities aimed at individual investors, to meet its budgetary needs. However, this is not an easy task, as the market is showing signs of saturation. Out of a programmed amount of 95 billion CFA francs on December 12, 2025, by all UEMOA countries, only 35 billion were effectively mobilized, and costs are increasing. Continuing to refinance debt on this market under these conditions only transfers sovereign risk to the balance sheets of regional banks, creating systemic fragility.
Details of the Bond Issuance
The Senegalese bond issuance has maturities spread over four tranches (3, 5, 7, and 10 years) with a coupon ranging from 6.4% to 6.95%. The mobilized resources will contribute to financing the country's budgetary needs for 2026. Subscriptions will continue until March 19.
