Regions

A US$500 million ten year Eurobond issue would be made by Senegal pegged at a 6% interest rate. This was revealed in a report by the International Monetary Fund.

This pegged interest rate, according to market analysts, should be raised in order to recover the investments. The bond issue would help the West African nation to close its financing gap as well as be able to reduce its short term financing from the African regional market. 

According to the report, "The government is expected to issue a new ten year, US$500 million Eurobond this year at an interest rate of about 6%, in line with the current yields on the 2011 Eurobond."

An offiicial from Senegal confirmed that the government is focused on a 50 billion CFA franc or US$100 million ten year domestic bond issue offered at 6.5% interest rate. By July 21, this offer would be closed. 

Senegal is one of the very few African nations that have sought to tap the international markets through a Eurobond issue.