• Treasury secures CFA364 billion in oversubscribed bond issuance
• S&P cuts Senegal’s rating to B- after discovery of hidden debt
• Over CFA1,260 billion raised year-to-date on the WAEMU debt market

The government of Senegal announced on July 15 it has raised CFA364 billion (about $644 million) through a syndicated bond issuance on the domestic financial market. This is the country’s second public offering of 2025. It follows an earlier issue that raised over CFA400 billion.

The latest operation, which ran from June 19 to July 8, had an initial target of CFA300 billion and was oversubscribed at 121.3%, according to a statement from the Ministry of Finance. It was arranged by CGF Bourse and Société Générale Sénégal as part of a strategy to diversify funding sources and strengthen the role of local investors.

The issuance came just one day after S&P Global Ratings downgraded Senegal’s sovereign credit rating from B to B-, with a negative outlook. The U.S. rating agency cited a worsening fiscal situation following an audit by Mazars, which uncovered off-balance-sheet debt totaling CFA8,300 billion.

According to S&P, this hidden debt, largely made up of unrecorded external loans, pushes Senegal’s total public debt to 118% of GDP, one of the highest levels on the continent. The agency forecasts record financing needs in 2025 at CFA5,700 billion, with debt servicing potentially reaching CFA8,800 billion in 2026.

Despite rising fiscal pressure, Senegal’s public debt issuances remain well received by regional investors. Since the beginning of the year, the country has raised over CFA1,260 billion on the WAEMU securities market, marking a 267% increase compared to the same period in 2024.

The government is counting on 8% economic growth in 2025, driven by the launch of oil and gas production from the Sangomar and GTA projects. A tax code reform is also planned for 2026 to expand the tax base.

In parallel, talks are underway with the International Monetary Fund (IMF) for a new financing program.