It seems Cote d’Ivoire still has the trust of international investors as the actors massively responded to all its sovereign bonds issuances. On June 9, at the close of stock markets, its order book for ongoing bond issuance received close to $10 billion worth of subscriptions at interest rates below 7%.

In details, the country issued a €625 million Eurobond which was subscribed at close to €4.4 billion ($4.9 billion). Ivorian authorities agreed to an interest rate of 5.12% and maturity of 8 years for the instrument.

Another $1.25 billion bon was also oversubscribed for $4.8 billion at a rate of 6.25%, with a maturity period of 16 years.

Some analysts explain that even though, Cote d’Ivoire barely exits a short socio-economic crisis, characterized by issues with the army and public administration, it has good fundamentals paired with a growth forecast (above 6%).

Moreover, the government has decided to cut its expenditures to adapt to budget constraints. In the same framework, the country reached agreements with its lenders to buy back $750 million worth of sovereign debts, which were to be paid in 2023 and 2024. This should reduce debt’s pressure on its budget.

By issuing a new bond, Cote d’Ivoire will be able to bridge foreign exchange deficit, which results from the global slump in cocoa prices, and palliate the significant depreciation of stocks which may discourage investors.

Idriss Linge