• Senegal launches $526 million bond amid stalled IMF program talks
• Fixed rates offered: 6.60% (5 yrs), 6.75% (7 yrs), 6.95% (10 yrs)
• Funds to support projects in education, health, energy, and infrastructure

Senegal has launched a new bond issue worth CFA300 billion ($526.3 million) to finance key development projects following a standstill in its program with the International Monetary Fund (IMF). The issuance aims to test investor confidence and attract capital from local, regional, and international markets.

The bond offering, structured as an open public appeal for savings, will run from June 19 to 30, 2025. It includes three fixed-rate maturities: five years at 6.60%, seven years at 6.75%, and ten years at 6.95%. Each bond carries a nominal value of CFA10,000. CGF Bourse is the lead arranger, supported by Société Générale Senegal and SG Capital Securities West Africa.

This move comes as discussions between Dakar and the IMF remain frozen following the election of President Bassirou Diomaye Faye. Without a budgetary agreement with international lenders, Senegal is broadening its financing strategy to include savings from various investor bases.

The operation is taking place against a backdrop of atypical rate dynamics in the WAEMU public securities market. According to recent data from UMOA-Titres, five-year maturities are currently yielding higher returns (7.58%) than seven-year (5.97%) and ten-year (6.07%) maturities—indicating investor uncertainty around 2026–2027, when Senegal is due to start repaying eurobonds that have seen sharp discounts since March 2025.

Despite this, the fixed rates offered in the new bond issue are competitive—particularly for the longer-term options. The treasury hopes to attract strong interest in the seven- and ten-year bonds while maintaining moderate borrowing costs.

Since the beginning of 2025, Senegal has raised over CFA1,036 billion through auctions, with fundraising intensifying after mid-February when the Court of Auditors revealed CFA4,200 billion ($7 billion) in unrecorded public debt. By that time, only CFA185 billion had been mobilized.

In April, Senegal secured over CFA405 billion via a syndicated operation that drew strong participation from institutional investors. The latest public bond issue is part of a broader acceleration in funding aimed at ensuring the continuity of government operations amid reduced access to multilateral financing.

The government stated that proceeds from the bond will be used to finance projects in priority sectors such as education, health, infrastructure, water access, energy, agriculture, and digital technology—all areas with significant needs and high public expectations.