• DRC plans $1.5B Eurobond for infrastructure, connectivity

• Public debt at 18.49% of GDP, below regional average

• Success depends on transparency, project monitoring, investor confidence

The Democratic Republic of Congo is preparing to issue a $1.5 billion Eurobond to finance priority infrastructure and improve national connectivity. The process, announced by Minister of Finance Doudou Fwamba Likunde Li-Botayi on Friday, August 22, 2025, could be completed before June 30, 2026.

The issuance comes at a time when global interest rates remain high, between 4.25% and 4.50% in the U.S. and around 2.15% in Europe. These conditions could raise the cost of borrowing for the DRC if rates remain unchanged at the time of the Eurobond's issuance. The Ministry of Finance plans to hire two banks, one international and one local, along with an international law firm as a legal advisor to manage the fundraising.

Congo’s Current Debt Situation

According to the fourth-quarter 2024 public debt bulletin, produced by the Ministry of Finance in April 2025, the DRC's public debt stock stands at $13.168 billion. This debt represents 18.49% of the country's GDP, which is well below the 70% limit authorized by the Economic and Monetary Community of Central Africa (CEMAC) and significantly lower than the sub-Saharan African average of 59%. This ratio suggests the debt is manageable and sustainable.

However, the high cost of interest payments poses a long-term risk that could weigh on debt repayment. In April 2025, the financial ratings agency Moody’s confirmed the DRC's B3 rating with a stable outlook. This speculative rating is a signal of caution and reflects considerable risk for investors. The evolution of this rating could therefore influence risk perception among investors interested in subscribing to the Eurobond.

Objectives and Expectations

The operation will allow the DRC to diversify its financing sources and position itself in international markets through a longer-maturity debt. The funds raised are expected to be allocated to major infrastructure projects. Many analysts believe the success of this operation will depend less on the volume raised and more on the transparency of resource allocation and the rigorous monitoring of projects. For the DRC, this first-time issuance represents a crucial step toward building financial credibility internationally.

The country had previously considered a Eurobond issuance in 2015, but the project was ultimately unsuccessful. The relaunch of the initiative in 2025 raises several questions: What will be the financial terms of the issuance, including the interest rate, maturity, and repayment structure? Is it part of a broader plan for fundraising on international markets? And, most importantly, what impact will it have on the evolution of Congolese public debt? While awaiting concrete answers, this first Eurobond could be a key step in the country's access to international markets.

Chamberline Moko