Facing increasingly costly and volatile Eurobonds, West African states are turning to their regional financial markets for funding. Senegal is a prime example; since the beginning of the year, it has raised over 2.7 trillion CFA francs ($4.8 billion) on the financial market, with more than 700 billion CFA francs coming from the BRVM, the regional stock exchange's syndication segment.

This push culminated in a record-breaking 416 billion CFA franc fundraising round, the largest ever on the BRVM's syndication segment, structured and backed by Invictus Capital & Finance. Against this backdrop, Ecofin Agency interviewed the company's General Director, Isaac Mbaye (photo), a former banker with experience at Ecobank and Attijariwafa Bank.

As a central figure in the rise of local debt, Mbaye advocates for a pragmatic approach. He believes in tailoring financial structures to investor profiles, broadening the base of subscribers, and leveraging domestic savings over foreign financing. Ahead of the Structured Finance Africa Forum, which he is co-organizing in Dakar in September, Isaac Mbaye spoke to Ecofin Agency about the dynamics behind these record-setting fundraising efforts, the evolution of institutional investors, and the strategic role structured financing can play in transforming the continent.

Ecofin Agency: You recently advised on a major fundraising operation for the State of Senegal, which resulted in the mobilization of over 400 billion CFA francs. What lessons have you learned from this operation, particularly in terms of the depth and maturity of the regional market, given Senegal's current situation?

Isaac Mbaye: The 416 billion CFA franc operation is the largest sovereign fundraising ever carried out on the WAEMU regional financial market. It was arranged by Invictus Capital & Finance in collaboration with Société Générale de Banque and its subsidiary SGSWA, which acted as co-arranger and co-lead manager. Its success shows that our market is deeper than we imagine. From the beginning, we knew this operation would be atypical. The specific economic and political context forced us to think differently. We innovated by offering a simultaneous issuance in four tranches to meet the specific needs of each investor category. Some tranches offered short durations and reduced risk costs, while others had longer terms but with appropriate compensation. This tailor-made structuring allowed us to attract a variety of investors and demonstrate that the local market could absorb significant amounts. It is worth noting that the operation was initially planned for an amount of 150 billion CFA francs, but given the depth of the market and the large positive response, we revised the amount upwards to 405 billion before closing the operation with the record amount of 416 billion CFA francs. This operation also showed the importance of preliminary educational work to reassure subscribers about the solidity of the mechanisms and the destination of the funds.

I do not believe a head of state has ever been imprisoned for being too indebted; the main thing is that the debt finances value-creating projects. If we were facing economies in recession, the question of sustainability would be more concerning. But this is not the case

Ecofin Agency: In 2025, Senegal has tripled its interventions on the regional market, and Ivory Coast has doubled them. In your opinion, is the market able to sustainably absorb this pace without collateral effects on liquidity or returns?

Isaac Mbaye: We must keep in mind that states are financing themselves more locally because Eurobond issuances have become extremely costly and subject to exchange rate volatility. International variable-rate securities are directly impacted by market fluctuations, while on the regional market, costs are controlled and the currency is stable. I do not believe a head of state has ever been imprisoned for being too indebted; the main thing is that the debt finances value-creating projects. If we were facing economies in recession, the question of sustainability would be more concerning. But this is not the case: GDP and growth rates are rising in most countries in the zone. States are investing in structural infrastructures whose benefits should support debt servicing. The equation consists of controlling the level of debt by relating it to the wealth created. As long as the projects financed sustainably improve productivity and generate tax revenues, the market can absorb these issuances without causing a liquidity crisis, even if short-term adjustments in returns may occur.

Ecofin Agency: The economic recovery plan announced in early August 2024 relies on mobilizing local savings and the regional market. What opportunities and challenges do you see?

Isaac Mbaye: Senegal has decided to prioritize local financing of the economy by collecting available savings and limiting its exposure to international markets. This is not an isolated choice; other African countries have already taken this path and continue to do so. The decision is the result of an in-depth analysis of our market's potential and the risks associated with external financing. To date, the results are tangible: despite a delicate political context, the State of Senegal continues to pay public employee salaries and current expenses without any problem. We do not yet have any indication that this financing method will run out of steam in the short term. The challenges to be met are mainly technical. We must offer structures that are attractive enough to absorb national savings by providing competitive returns and adequate security for the investor's profile. These savings exist and are just waiting to be optimized. The 416 billion CFA franc bond issuance through a public appeal for savings that we arranged shows that the market responds when a relevant structure and a clear investment program are presented.

Today, investors go where the best opportunities are. The recent successes of sovereign issuances can be explained by their attractiveness: they offer satisfactory returns for a low level of risk, as they are guaranteed by the state.

Ecofin Agency: As a market player, how do you analyze investor behavior, the structuring of the financial offer, and the evolution of investor profiles today? Are new players emerging? Are others still missing?

Isaac Mbaye: Overall, investor profiles have not changed dramatically. Banks, insurance companies, pension funds, businesses, and individuals still represent the core of the subscribers. What has evolved is our approach: we seek to understand the specific needs of each category. Banks are concerned with the rotation of their assets and their regulatory ratios; insurers want to optimize their investments to match their commitments; individuals are looking for a secure investment that pays better than classic savings.

We conduct analyses to adapt our products and tranches to these expectations. Invictus also strives to broaden the investor base. We regularly organize international roadshows to present the regional market to foreign banks and funds. Recently, some international investors have taken the option of investing directly in local currency. This is a notable change, and we are proud of it. It proves that our market is becoming more attractive. However, obstacles remain. Foreign investors are used to securities listed on platforms that provide real-time information to facilitate decision-making. Our securities do not yet benefit from this technological infrastructure. We are working to produce theoretical prices and provide regular stock market information to remove these barriers.

Today, investors go where the best opportunities are. The recent successes of sovereign issuances can be explained by their attractiveness: they offer satisfactory returns for a low level of risk, as they are guaranteed by the state. This does not mean that investors ignore private operations. If they perceived better opportunities there, they would turn away. To date, they are primarily looking for profitability and security. They meticulously examine the return/risk ratio. Sovereign securities provide the greatest security, but it is the arrangers' responsibility to work on this ratio so that investors find an interest in corporate bonds or structured projects. If, tomorrow, the returns on private issuances become superior while maintaining a controlled risk, we will see investors shift their appetite. There is no secret: they make decisions based on profitability. Our role is to structure attractive products and communicate clearly on risks to encourage diversification.

Recent statistics show that even though these investors still represent a minority share, their market share is growing faster than that of banks. In the medium term, this trend should continue. This will help balance the investor structure, reduce risk concentration, and improve liquidity

Ecofin Agency: Banks still dominate subscriptions. Insurers, pension funds, and retirement funds are gaining ground. Is this a sustainable trend?

Isaac Mbaye: It is normal and desirable to see other institutional investors take a more important place. Banks will remain key players, but their primary purpose is to finance economic activities via credit. If they were to invest massively only on the bond market, the real economy would lack financing. Pension funds, retirement funds, and insurance companies, for their part, have regulatory obligations that push them to invest for the long term. Their rise to prominence is therefore logical and even indispensable to diversify demand and ensure market depth. Recent statistics show that even though these investors still represent a minority share, their market share is growing faster than that of banks. In the medium term, this trend should continue. This will help balance the investor structure, reduce risk concentration, and improve liquidity. I strongly encourage this breakthrough and hope that it will be a long-term trend to satisfy the quest for depth that all actors are looking for.

Ecofin Agency: You are a co-organizer of the Structured Finance Africa Forum 2025 scheduled for September 25 in Dakar. Why did you launch such an event now? What is its ambition, and what gap does it fill in the African financial ecosystem?

Isaac Mbaye: We frequently travel abroad to participate in finance forums, including forums that discuss African finance. However, the latter often only talk about it marginally, and topics like structured finance are never highlighted. Our ambition is to create an event entirely dedicated to structured finance and to make this topic a main subject.

We want this forum to be the work of Africans for Africans, even if it will have an international dimension. We invite ministers, regulators, bank directors, financial experts from the continent, and major international financial institutions. The aim is to bring local actors together around concrete issues: how to structure financing to accelerate the continent's development, which mechanisms work, and which ones need to be adapted? We claim this "African-ness" because we believe that solutions must be discussed and found locally. It is a space to point out our problems, find solutions, and identify ways and means to apply them.

The aim is to bring local actors together around concrete issues: how to structure financing to accelerate the continent's development, which mechanisms work, and which ones need to be adapted? We claim this "African-ness" because we believe that solutions must be discussed and found locally. It is a space to point out our problems, find solutions, and identify ways and means to apply them.

Ecofin Agency: What will be the main themes addressed at this forum?

Isaac Mbaye: The forum will be structured around the general theme "Structured Financing as a Lever for Development." This covers several areas. We will talk about the different types of structured financing, climate finance, infrastructure project financing and PPPs, trade finance, and securitization. For securitization, we will go into detail: as a group, we have a common fund management company for securitization, and we will present concrete cases of operations carried out, the challenges encountered, the security mechanisms used, and the necessary regulatory changes. We will also address fintech, microfinance, SMEs, as well as the mechanisms for expanding access to credit.

It seems important to us not to talk only about sovereign financing but also about the financing of businesses and individuals. Sustainable finance will be a cross-cutting theme: blue finance, green finance, and climate funds. We will explain how to access this financing and what institutional framework is necessary to benefit from it. Finally, we will have practical sessions where professionals will describe structured operations they have conducted, so that the discussions remain very concrete and interactive.

The issue of sustainable finance is central, and we have made it a panel in its own right in the forum program. We want to demonstrate that it can genuinely serve Africa's development. Access to green and blue financing is not reserved for developed markets; our states and businesses can benefit from it

Ecofin Agency: Is the market ready to innovate with sustainable finance instruments? What role can Invictus play?

Isaac Mbaye: The issue of sustainable finance is central, and we have made it a panel in its own right in the forum program. We want to demonstrate that it can genuinely serve Africa's development. Access to green and blue financing is not reserved for developed markets; our states and businesses can benefit from it. The challenge is to develop eligible projects and put in place the necessary structures to capture the resources. Invictus has anticipated this evolution. Our group is organized with several subsidiaries: the SGI structures so-called classic operations, while another subsidiary, Development Finance Advisory (DFA), specializes entirely in sustainable finance. DFA is a consulting company that already manages a $300 million financing line granted by an international bank to the State of Senegal. It supports the state in identifying projects, structuring operations, and ensuring compliance with ESG requirements. At the forum, we will present several success stories from this sustainable component. Our ambition is to remain a transactional operator but also to become a key player in sustainable finance by showing that it is possible to integrate environmental and social criteria while maintaining attractive returns.

Interview by Fiacre E. Kakpo