• Ivory Coast is said to be negotiating a €800M syndicated loan with Standard Chartered and Société Générale, backed by MIGA and AfDB, to refinance debts discreetly amid cocoa volatility.
• Loan pushes 2025 borrowings to $3.262B, including $1.75B Eurobond, $260M CFA bond, and $336M Samurai bond, with external debt at $35.06B or 58.1% GDP.
• Debt costs up to 4.7%, maturities at 8.5 years, but sustainable with low ratios and 6.5% growth, amid investor demand despite Trump's tariffs. 

Ivory Coast is negotiating with Standard Chartered Bank and Société Générale SA for a €800 million syndicated loan, backed by partial guarantees from the Multilateral Investment Guarantee Agency and the African Development Bank, according to sources familiar with the matter, as reported by Bloomberg on 31 July. The facility, valued at about $916 million, would help the West African nation refinance upcoming debt obligations, offering a discreet alternative to public bond markets amid fluctuations in cocoa prices.

This arrangement echoes a December 2024 syndicated loan, through which Ivory Coast raised roughly $800 million from a group including Standard Chartered, Nedbank Group Ltd., and Rand Merchant Bank. That deal was executed swiftly and without fanfare, sidestepping investor scrutiny and market volatility tied to bonds. Syndicated loans provide greater flexibility, including customisable repayment timelines and currency options, in contrast to bonds that demand extensive marketing efforts and can be influenced by immediate economic shifts.

The negotiations come as cocoa prices remain unpredictable, putting pressure on the Ivory Coast's finances. As the world's top cocoa producer, accounting for over 40% of global supply, the country has endured sharp swings: prices peaked above $11,000 per tonne in April 2024 due to weather-related shortages and crop diseases, before easing with better yields and market speculation. Cocoa exports constitute around 40% of the Ivory Coast's export revenue, making such volatility a direct threat to the government's income. The proposed loan would act as a liquidity buffer, enabling debt servicing without depleting reserves or cutting back on investments in infrastructure and social initiatives.

Ivory Coast's 2025 Borrowing Surge Tops $3 Billion With Latest Talks.

Ivory Coast's borrowing in 2025 is projected to surpass $3 billion with the latest negotiations. If the syndicated loan proceeds, it would bring the country’s total external borrowings for 2025 to approximately $3.262 billion, including a mix of Eurobonds, a CFA-denominated bond, and a Samurai bond issued earlier this year. This increase reflects active engagement with global capital markets to manage its debt profile.

In March 2025, Ivory Coast issued a $1.75 billion dual-tranche Eurobond in US dollars, attracting over $3.5 billion in orders. The issuance included a sustainable bond maturing in 2033, with proceeds allocated to debt repurchases and budgetary needs. It was among the largest dollar-denominated bond sales by a Sub-Saharan African country that year, indicating strong market confidence.

In April, the country innovated with a CFA franc-denominated bond listed on the London Stock Exchange, raising about $260 million. Pegged to the currency of the West African Economic and Monetary Union, this bond minimises foreign-exchange risk for local investors and promotes regional capital market development, supporting efforts to expand domestic funding sources.

In July, Ivory Coast made a debut with its first Samurai bond, raising 50 billion Japanese yen, approximately $336 million, in a 10-year, yen-denominated issuance at a 2.3% coupon. Certified for environmental, social, and governance compliance, the funds are earmarked for sectors such as health and education. This move helps diversify currency risks away from the US dollar. It takes advantage of Japan's low interest rates, making Ivory Coast the second Sub-Saharan African issuer of Samurai bonds after Egypt.

As of March 2025, Ivory Coast's external debt totalled $35.06 billion, or 58.1% of GDP, considered sustainable given annual growth rates of 6% to 7%. Commercial and Eurobond debt accounted for $17.3 billion. For fiscal 2024, the country faced $2 billion in repayments on such obligations, including principal and interest, heightening the need for refinancing mechanisms like the current negotiations.

The following table outlines the composition of external debt and recent additions:

Breakdown, based on data from the Direction Générale du Financement

Rising debt costs and shorter maturities test sustainability

Ivory Coast's debt remains sustainable, but borrowing costs have risen from an average of 3.6% to 4.7%. Meanwhile, average maturities have shortened from 9.2 years to 8.5 years, according to reports from the Direction Générale du Financement. These changes echo broader global trends, including higher interest rates in advanced economies as central banks combat inflation.

The cost increase stems from heavier reliance on commercial debt, which attracts higher rates than concessional multilateral financing, along with currency movements and risk premiums demanded by investors amid international tensions. For example, 2025 Eurobonds yielded 6% to 7%, well above the interest rates on IMF loans below 2%. This increase boosts annual interest expenses, potentially diverting resources from critical areas such as infrastructure upgrades or agricultural development.

Shorter maturities heighten rollover risks, necessitating more frequent refinancing and increased exposure to market fluctuations. Nonetheless, fundamental indicators support sustainability: debt-service-to-revenue ratios remain under 20%, and the IMF expects 6.5% GDP growth in 2025, driven by cocoa sector improvements, gold and manganese mining, and expansion in services.

Investor demand persists amid global trade tensions.

The potential syndicated loan comes amid heightened investor interest in emerging-market assets, driven by volatility in developed economies and policies under President Donald Trump. As of August 2025, global markets have declined following Trump's imposition of expanded tariffs on over 66 countries, escalating a trade war that disrupts supply chains and investment flows. These measures, aimed at protecting US sectors, increase costs for trading partners and could slow growth in export-dependent nations like the Ivory Coast, which exports goods to Europe and Asia.

Paradoxically, such uncertainty directs capital toward higher-yielding opportunities in stable emerging markets. With US Treasuries offering 4% to 5%, investors are attracted to African instruments yielding 6% to 8%. Ivory Coast's BB credit rating, upgraded by S&P Global Ratings in 2024, along with IMF-backed reforms, enhances its appeal.

This deal highlights Ivory Coast's strategic financing approach: leveraging guarantees from multilaterals, using various currencies across the euro, yen, and CFA franc, and timing the market effectively. While challenges such as reliance on cocoa, climate vulnerabilities, and 2025 elections loom, proper oversight can turn these borrowings into engines for growth. Stakeholders will await official confirmation and its alignment with long-term fiscal plans, to ensure that debt leads to prosperity.

Idriss Linge