Benin successfully raises €1 billion Eurobonds

Romuald Wadagni, Minister of Finance of Benin

Benin is the first African country to make an exit on the international financial market in 2021. On January 12, the country managed to raise 1 billion euros or about 656 billions CFA francs from investors, the government announced.

In detail, the country has mobilized 700 million euros over a maturity of 11 years at a rate of 4.875% on the one hand and on the other hand 300 million euros over 31 years at a rate of 6.875%. The latter is the longest maturity the country has ever attained. Benin thus joins the small group of emerging issuers with a Eurobond over 30 years of maturity.

The operation attracted nearly 3 billions euros in orders from 125 investors, including 1.9 billion euros for the 11-year tranche and 1.2 billion euros for the 31-year tranche, according to the authorities.

Refinancing debt and supporting public investment

This envelope is intended to refinance the country's debt and to contribute to the financing of the budget 2021. With this lifting, Benin intends to ensure the partial repayment of 65% of its Eurobond issued on March 17th, 2019 and maturing in 2026, another part to finance the flagship projects of the government foreseen in the budget 2021.

"The success of the partial purchase of Eurobond 2026 allows Benin to limit the risks of refinancing, to extend the maturity of its debt and to reduce its average cost", welcomed the government.

Following Benin, Ghana is also expected to enter the international debt market in the first quarter of this year in order to raise between 3 and 5 billions dollars, the government announced last year.

At the end of November 2020, Côte d'Ivoire raised €1 billion of Eurobonds over a 12-year maturity at a rate of 5%.

Jean Mermoz Konandi

Publié le 14/01/21 18:01