Benin Eyes $750M Eurobond Amid Tightening Market Conditions
TLDR
- Benin is preparing to issue $750 million in Eurobonds, aiming to secure external financing as yields near levels that previously stalled African debt sales
- he bond, expected to have a 16-year maturity and a 15-year weighted average life, could be priced around 8%
- The government has enlisted Citigroup Inc., J.P. Morgan Chase & Co., and Societe Generale SA to arrange investor meetings, starting January 8
Benin is preparing to issue $750 million in Eurobonds, aiming to secure external financing as yields near levels that previously stalled African debt sales. The bond, expected to have a 16-year maturity and a 15-year weighted average life, could be priced around 8%, with Benin’s 2038 dollar bonds recently trading at 8.76%.
The government has enlisted Citigroup Inc., J.P. Morgan Chase & Co., and Societe Generale SA to arrange investor meetings, starting January 8, virtually and in-person in London. The sale comes amid strong emerging-market bond issuance, with $26 billion sold globally in the first week of 2025.
Benin’s Finance Ministry says the timing depends on market conditions, while officials seek to capitalize on investor appetite for African issuers. Alongside the Eurobond, Benin is offering a €250 million tender for its euro-denominated bonds due 2032.
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Key Takeaways
Benin’s push to tap Eurobond markets reflects its urgent need for external financing amid political and economic uncertainties. Political instability in neighboring Niger, domestic tensions ahead of the 2026 elections, and spillover from Islamist insurgency pose risks. While S&P upgraded Benin’s foreign-currency debt outlook to positive in October, the government remains reliant on concessional funds like those from the IMF and commercial loans. The IMF agreement to provide $95 million further strengthens its financing options. The sale’s success will depend on investor confidence in Benin’s ability to manage rising risks, diversify funding sources, and maintain debt sustainability as global borrowing conditions tighten.
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