• Côte d'Ivoire raises CFA 220 billion in international bond, first for an African state
• Interest rates lower than regional market, highlighting foreign investor confidence
• Plans to raise CFA 1,100 billion more in Q2 2025 amid upcoming debt repayments

On March 26, 2025, Côte d’Ivoire made history by issuing the first-ever CFA franc-denominated bond on the international market, becoming the first African state to do so. The operation raised CFA220 billion (about €335 million) at a rate of 6.875% over three years, with repayment to be made in euros—the currency to which the CFA franc is pegged at a fixed rate—thereby minimizing exchange rate risk.

This international issuance comes with more favorable terms than those recently obtained on the regional market. Just a day earlier, the government raised CFA66 billion on the Umoa-Titres market, including a CFA12 billion tranche at 7.63%, more than 75 basis points above the international issue. A week prior, three-year bonds were yielding around 7.64%. This discrepancy shows that foreign investors offered better conditions despite the bond being denominated in the same currency.

The entry ticket for investors was set at CFA6.55 million (about €10,000), significantly lower than typical eurobond thresholds of $100,000 to $200,000. With a face value of CFA655,000 per bond, the offer was made more accessible to a broader range of subscribers—especially amid strong demand for Ivorian local-currency bonds.

Since the start of the year, Côte d’Ivoire has raised over CFA1.5 trillion on the regional market, accounting for more than half of all sovereign issues within WAEMU. The country has also been restructuring part of its debt, exchanging securities maturing in 2025 for new six- and seven-year bonds worth a total of CFA450 billion.

This strategy comes as the government faces CFA5.6 trillion ($9.2 billion) in debt repayments this year, including over CFA2 trillion just for bonds and Treasury bills on the domestic market. With elections approaching, Côte d’Ivoire is accelerating its fundraising efforts and plans to raise an additional CFA1.1 trillion regionally in Q2 2025 through auctions.

The bond issuance also takes place in a context of relatively stable credit ratings. Fitch recently affirmed the country's local-currency rating with a stable outlook. Côte d’Ivoire remains classified as a moderate-risk borrower (category 5) on the OECD’s country risk scale, a rating that still allows some institutional investors to benefit from favorable regulatory conditions for export financing.

This new issue follows a $1.75 billion Eurobond raised by Abidjan on March 25, along with a $700 million refinancing deal.