• Senegal raised CFA450 billion ($796 million) in its third public bond issue of 2025, one day after Moody’s downgraded its sovereign rating from B3 to Caa1.
• The government says investor demand exceeded 150% of the target, reflecting confidence in the country’s credit despite budget pressures.
• Senegal has mobilized nearly CFA3,000 billion ($5.3 billion) this year on regional financial markets.

Senegal’s government said it raised more than CFA450 billion ($796 million) in its third Public Offering of the year, a day after Moody’s Investors Service downgraded its sovereign credit rating. The Ministry of Finance and Budget announced the operation on Saturday, describing it as a “sign of renewed investor confidence” amid tightening fiscal conditions.

The issuance, launched on September 18 and closed on October 10, targeted CFA300 billion. The subscription rate reached over 150%, the ministry said. Impaxis Securities structured the deal as lead arranger, with Société Générale acting as co-arranger.

Officials said the operation fits into the government’s broader strategy to rely more on domestic and regional savings as access to external financing narrows. The ministry noted strong participation from Senegal’s diaspora in more than 45 countries, alongside institutional investors from the West African Economic and Monetary Union (WAEMU), including banks, insurers, and pension funds.

Proceeds will help cover the state’s 2025 financing needs as Dakar faces fiscal pressures linked to the “hidden debt” scandal. This marks Senegal’s third public savings operation of the year. The first, launched in March, sought CFA150 billion and closed early after raising more than 400 billion. The second, in June, targeted 300 billion and raised 364 billion by July 8.

In total, the three issues have brought in over CFA1,200 billion  on WAEMU’s syndicated market. Another CFA1,784 billion have been raised through UMOA-Titres auctions, bringing total 2025 regional market financing to nearly CFA3,000 billion.

Moody’s downgraded Senegal’s long-term issuer rating from B3 to Caa1 with a negative outlook on Friday, citing “rising risks” to debt sustainability and liquidity. It was the second downgrade this year. The agency estimates Senegal’s budget deficit at around 14% and public debt at 119% of GDP.

The Finance Ministry called Moody’s assessment “speculative, subjective, and biased,” saying it “does not reflect the country’s economic fundamentals or efforts to restore fiscal stability.”

Prime Minister Ousmane Sonko unveiled an economic recovery plan in August, 90% financed by domestic resources, as part of what the government calls a “sovereignization” of the economy. Dakar blames the previous administration for underreporting financial commitments between 2019 and 2023 — a claim the International Monetary Fund (IMF) later confirmed, citing “significant misreporting” of debt and deficit data.

FMI disbursements remain frozen pending a new support program, with negotiations expected this week in Washington during the IMF and World Bank annual meetings.

The Finance Ministry said the latest bond success underscores investor trust and validates the shift toward domestic funding. “This reflects the confidence of investors and the relevance of the domestic financing strategy,” it said, arguing that regional markets remain a reliable alternative even as global rating agencies tighten scrutiny.

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

Adapted in English by Ange Jason Quenum