By Enyichukwu Enemanna
Senegal has surpassed its earlier target of 300 billion CFA francs, raising 364 billion CFA francs ($644 million) in its second public bond offering of 2025, the West African nation’s finance ministry announced on Tuesday.
The issuance, which ran from June 19 to July 8, was arranged by CGF Bourse with Societe Generale Senegal as co-lead.
This forms part of government’s efforts to diversify revenue generation means, deepen the domestic capital market, and reduce its debt profile.
Senegal has faced mounting debt profile, especially from previous administration. Its international bonds have lost roughly a quarter of their value since revealing in September it had what analysts estimated as up to $14 billion of previously undisclosed debt.
That pushed its debt-to-GDP ratio towards 120%, making it one of the highest in Africa.
Despite the debt concerns, the latest offering was oversubscribed by 21.3%, indicating strong demand from both domestic and regional investors.
The finance ministry attributed the success of the issuance to growing investor confidence in Senegal’s economic outlook under the current administration.
“In a challenging economic environment, this fundraising effort enhances the credibility of Senegal’s financial signature,” the ministry said in the statement.
Proceeds from the bond sale will support public finance recovery, economic stimulus measures, and help optimise debt servicing. The securities are also eligible for refinancing, providing additional liquidity to the banking sector, the ministry added.
The country, which began producing oil and gas last year, has increasingly turned to the West Africa regional market to meet its financing needs amid tightening global credit conditions and rising debt servicing costs.
The country’s finance ministry said on Tuesday that it had begun recalculating its gross domestic product using an updated base year in a move that could result in an improvement in its debt metrics.
Bassirou Diomaye Faye was inaugurated the West African country’s President in 2024, promising to clean up corruption and better manage Senegal’s natural resources.
