“The latest debt issuance by Côte d’Ivoire will allow the country to improve its debt amortization profile; the authorities plan to use a significant portion of the funds to finance upcoming commercial debt payments maturing in 2028 and 2032,” stated Standard & Poor’s in a commentary sent to investors.
Côte d’Ivoire issued external debt last week worth .75 billion, approximately €1.62 billion, complemented by a local currency amount equivalent to about €335 million.
This issuance of public debt by Côte d’Ivoire, part of which was executed for the first time in local currency, is expected to enhance the credit profile, according to S&P.
“The latest Eurobond issuance by Côte d’Ivoire comprises a .75 billion issue and another of about €335 million, denominated in Central African francs (XOF),” which, as per S&P, marks the “first time in Africa.”
Both issuances witnessed demand exceeding supply, with the dollar portion receiving bids exceeding billion, approximately €4.6 billion, demonstrating strong investor interest in this 11-year maturity issuance carrying an annual interest rate of 6.4%.
The portion issued in Central African francs received €400 million in bids, “allowing the government to raise the initial proposal of €200 million,” mentioned S&P, adding that although the issuance “increases market visibility in Central African francs,” attracting investors to the financial market of the West African Economic and Monetary Union will “still take time.”
Analysts at this American rating agency attribute the high demand for this debt issuance to Côte d’Ivoire’s strong economic prospects, reform momentum, fiscal consolidation, and its membership in UEMOA.
S&P projects that Côte d’Ivoire will grow by an average of 6.7% between 2025 and 2027, with the budget deficit improving to 3%, compared to 7% recorded in 2022.
“Rapidly accelerating hydrocarbon and mining exports, along with ongoing industrialization, will support export and economic growth, and we believe the proactive debt management by the authorities continues to improve the country’s debt profile and addresses risks arising from the debt volume,” S&P concludes.
