by Nurat Uthman
Senegal has raised $300 million by reopening a bond issued in June to cover financing needs for the 2024 budget after the International Monetary Fund (IMF) delayed disbursements due to audit findings, its finance ministry said on Wednesday.
The transaction, which involves the West African country’s privately placed bond that will mature in 2031, came with a hedge against foreign exchange fluctuations, the ministry said in a statement, allowing it to attain an interest rate of 6.33%.
The transaction was fully underwritten by JP Morgan.
The government decided not to go ahead with Senegal’s request for an IMF disbursement after an audit revealed that the country’s debt and budget deficit were much wider than the previous administration had reported.
The government intends to enter into discussions with the IMF to establish a new program aligned with the objectives of stabilizing the macroeconomic framework, the ministry said.
The decision to reopen the international bond followed a decline of liquidity in the domestic market, it said.
“This fund-raising confirms Senegal’s commitment to transparency, and consolidates its status as a credible issuer in the eyes of international investors,” the ministry said.
