• Senelec issued a $215 million bond backed by unpaid bills, marking the first securitization by a public utility in Africa.

• Half of the proceeds will finance green projects, while the rest is tied to measurable sustainability targets.

• The senior tranche pays 8.15% interest, with mezzanine and junior tranches offering 10%, some at zero-coupon.

Senegal’s national electricity company, Senelec, launched a CFA120 billion ($214.8 million) bond issue through a securitization of unpaid bills, the arrangers said on Oct. 1.

The transaction, named “FCTC Senelec 2025-2030”, was structured by BOAD Titrisation. It is the first operation in Africa by a public utility that combines securitization with international double labeling as a Green Bond and Sustainability-Linked Bond.

The securitization covers overdue invoices owed to Senelec by public administrations, embassies, and large private companies. These receivables were transferred to a securitization fund approved by the West African Monetary Union’s financial markets authority. In return, the fund issues negotiable bonds listed on the BRVM regional stock exchange.

The issuance is split into tranches maturing in 2030. Senior bonds worth CFA83 billion carry an interest rate of 8.15%. Mezzanine and junior tranches of CFA37 billion yield 10%, with some issued as zero-coupon securities. Repayments of principal and interest will occur semi-annually until 2030.

BOAD Titrisation said about half of the proceeds, CFA63 billion, will fund renewable energy, energy efficiency, and carbon reduction projects. The remaining CFA57 billion will be linked to sustainability performance targets, with financing costs adjusted according to results.

“This operation is crucial for Senelec,” the company stated. It serves nearly 80% of Senegal’s population and is working toward universal access to electricity and a more diversified energy mix.

Senegal plans to increase renewable energy to 40% of its power mix by 2030. The country is also preparing to develop gas fields and import liquefied natural gas to strengthen supply security.

The securitization supports this strategy by mobilizing long-term financing for both green initiatives and infrastructure expansion.

The deal comes amid a regional push for structured finance solutions. Just days earlier, authorities announced the second phase of the “Electricity for All” fund, which aims to raise CFA60 billion to connect around 800,000 additional households to the national grid.

This article was initially published in French by Fiacre E. Kakpo

Adapted in English by Ange Jason Quenum