Cameroon is reported to have issued a US$750 million Eurobond on Jan. 28, 2026, marking a potential milestone in its 2026 external borrowing strategy, Bloomberg cited sources close to the transaction. Using an implied exchange rate from July 2025, the amount equates to roughly CFA420.3 billion. The bond, with a five-year maturity, carries a yield of 10.12 percent, reflecting elevated borrowing costs for the Central African country.
The transaction, not yet officially confirmed by Cameroonian authorities, would indicate a return to international capital markets after the government in July 2025 outlined plans to contract a “significant external loan” of CFA650 billion in 2026. At the time, officials did not specify the form of financing—whether via bank loans, multilateral or bilateral funding, or a Eurobond issuance.
The legal framework for the operation was set by a decree signed on Jan. 21, 2026, authorising Finance Minister Louis Paul Motazé to raise up to CFA1,650 billion through domestic and international capital markets, including CFA1,000 billion from foreign creditors. Analysts say the reported Eurobond could represent a first tranche of this borrowing plan.
Carrying out such a deal in the run-up to the October 2025 presidential election had been considered challenging, given heightened political risks that often make investors demand higher returns. Despite this, the reported 10.12 percent yield signals strong investor appetite for high-yield African sovereign debt, even as it underscores the relatively high cost of financing for Cameroon.
For comparison, other regional issuers such as Benin and Côte d’Ivoire have recently accessed international markets at lower yields, reflecting differences in perceived economic fundamentals and creditworthiness.
The potential Eurobond issuance comes amid ongoing fiscal pressures in Cameroon, as the government balances development spending, social programmes, and debt service obligations. Observers note that higher yields increase borrowing costs, which could affect the country’s debt sustainability if market conditions tighten.
If confirmed, the $750 million transaction would provide the Cameroonian government with additional foreign currency liquidity, allowing it to fund infrastructure projects, public investments, and budgetary needs in the near term.
Market participants say Cameroon’s return to Eurobond markets signals a broader trend among Central African countries to tap international debt investors to meet financing gaps, particularly in the face of domestic revenue shortfalls and constrained access to concessional financing.
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While the deal is still based on sources cited by Bloomberg, investors and analysts will be watching for official confirmation from the Ministry of Finance. Details on book-building, allocation, and potential investor composition are yet to emerge.
The reported issuance highlights ongoing challenges for African sovereigns in navigating external financing. Elevated yields suggest that while appetite exists for African debt, market conditions remain sensitive to political risk, macroeconomic fundamentals, and regional comparability.
Cameroon’s broader 2026 borrowing programme, if executed fully, could include additional domestic and international instruments aimed at raising up to CFA1,650 billion, giving the government flexibility to manage cash flow and debt obligations over the year.
The Eurobond would also serve as a benchmark for future issues, potentially guiding pricing and investor interest for subsequent tranches in both the domestic and international markets.
