• Banque Agricole du Sénégal is raising CFA80 billion ($142 million) through a securitized bond.

• The offer includes a 7-year tranche A at 8% and tranche B at 9%, listed on the BRVM.

• Funds aim to diversify financing and boost support for the agricultural sector.

Invictus Capital & Finance SA, acting as lead arranger, announced on August 28 the launch of a bond issue by public offering on behalf of Banque Agricole du Sénégal (LBA).

The operation, named FCTC Croissance Agricole Tranche A 8% – Tranche B 9%, is based on the securitization of the bank’s receivables. The total amount sought is CFA80 billion ($142 million), split into two tranches: CFA60 billion for tranche A, with a 7-year maturity and an 8% interest rate, and CFA20 billion for tranche B, also with a 7-year maturity but offering 9%.

The subscription period runs from August 28 to September 26, 2025. Each bond has a face value of CFA10,000. Repayment will be made semi-annually, without grace period, until 2032. A listing application on the West African Regional Stock Exchange (BRVM-WAEMU) is planned.

Purpose of the securitization

Securitization converts receivables, or expected future debts, into immediate liquidity. For the bank, the goal is to diversify funding sources and strengthen its ability to finance the economy, especially agriculture. At a time when African banks are seeking new financing tools, securitization has become an effective way to mobilize capital through regional financial markets. It also allows the transfer of part of the credit risk to bond investors.

Formerly the Caisse nationale de crédit agricole du Sénégal (CNCAS), the Agricultural Bank of Senegal was established in 1984 as a joint-stock company with a board of directors and began operations in March 1985. Historically focused on agricultural financing, it now plays a major role in the Senegalese banking sector.

The use of securitization is part of a broader push to modernize financial instruments in Senegal and the region. The BRVM, which serves the eight WAEMU countries, has already hosted several securitized bond issues, consolidating its role as a driver of economic financing.