• Cameroon plans CFA82 billion additional tranche after oversubscribed Eurobond
• Initial $750 million issuance attracted nearly $1 billion demand
• Total operation could reach about CFA497 billion if completed

A few weeks after returning to international capital markets, Cameroon is preparing to expand its latest Eurobond operation following stronger-than-expected investor demand.

According to sources familiar with the process, authorities in Yaoundé are planning an additional tranche of CFA82 billion linked to the Eurobond placed on January 30, 2026, in London.

The government initially raised $750 million (about CFA415 billion) through a private placement arranged by Citi, JP Morgan, and Cygnum Capital. The seven-year bond, which includes a two-year grace period on principal repayments, had originally targeted $600 million but ultimately attracted nearly $1 billion in subscriptions.

Several sources say the strong demand reflects investors’ perception of Cameroon’s credit quality. Even after the deal closed, additional investors reportedly expressed interest in participating.

To capitalize on that momentum, authorities are now preparing an additional CFA82 billion placement, also through a private transaction.

If fully subscribed, the total funds raised through the operation would reach about CFA497 billion.

Some investors are reportedly willing to subscribe to the additional tranche at a lower yield than the 7.79% secured in the initial issuance. The new tranche is also expected to include a cross-currency swap structure.

The financing structure reflects a strategy aimed at reducing the effective cost of Cameroon’s debt.

Although the bond’s nominal coupon stood at 10.12%, the government lowered the effective cost to 7.79% through a currency swap, designed to limit exposure to euro–dollar exchange rate fluctuations while taking advantage of more favorable financing conditions in the eurozone.

Officials describe the arrangement as a mechanism to optimize borrowing costs while managing currency risk.

Toward a partially guaranteed issuance

Unless there are last-minute changes, the additional tranche could be finalized in the coming weeks.

It is part of Cameroon’s broader plan to raise CFA1 trillion on international markets in 2026. After the January issuance and the planned additional tranche, the government would still need to secure about CFA503 billion to meet that target.

Finance Minister Louis Paul Motazé said the government is also in discussions with the African Development Bank (AfDB) and the African Trade & Investment Development Insurance (ATIDI) agency about obtaining a partial guarantee for a future international bond issuance.

The goal is to improve financing conditions and secure external funding at a time when public finances remain under pressure.

According to the minister, the funds raised will be used to settle outstanding payments from previous budgets, including payments related to priority government projects, in line with the 2026 Finance Law.

Following January’s oversubscribed issuance, Cameroon is once again testing investor appetite in a market where demand for African sovereign debt appears to be gradually reopening.

Amina Malloum, with Business in Cameroon