Cameroon has reportedly returned to international capital markets with a US$750 million Eurobond issuance, equivalent to about CFA420.3 billion, marking a major step in the country’s 2026 external borrowing strategy. According to sources close to the transaction, the bond was issued on January 28, 2026, with a five-year maturity and a yield of 10.12%.
While the transaction has not yet been officially confirmed by Cameroonian authorities, the figures align with the government’s previously announced financing plans. Using the implicit exchange rate communicated by the authorities in July 2025, CFA650 billion for approximately US$1.16 billion, the US$750 million issuance translates to roughly CFA420.3 billion.
If confirmed, the Eurobond would represent one of Cameroon’s most significant external financing operations in recent years, reflecting both the country’s funding needs and the cost of borrowing faced by African sovereigns in a high-interest-rate global environment.
In July 2025, the Cameroonian government announced its intention to raise a “significant external loan” of CFA650 billion in 2026 to support budgetary needs and development priorities. At the time, authorities did not specify whether the financing would come from syndicated bank loans, multilateral or bilateral partners, or international bond markets.
The reported Eurobond issuance suggests that Yaoundé has opted, at least in part, to tap global investors despite elevated yields and tighter financial conditions. The five-year tenor points to a strategy focused on medium-term financing rather than long-dated debt, potentially aimed at balancing refinancing risks with immediate fiscal needs.
High yield reflects market risk perception
The reported 10.12% yield underscores the premium investors continue to demand for holding African sovereign debt. Global interest rates remain relatively high, while concerns over debt sustainability, currency risk, and fiscal pressures across emerging and frontier markets have pushed borrowing costs upward.
For Cameroon, the yield also reflects country-specific factors, including public debt levels, foreign exchange constraints, and exposure to commodity price fluctuations. While costly, access to international markets at this scale signals that Cameroon retains a degree of investor confidence at a time when several African countries remain locked out of global debt markets.
If the Eurobond is confirmed, it will add to Cameroon’s external debt stock and increase near-term debt service obligations. However, it could also provide breathing room for the government to refinance existing liabilities, support priority spending, and reduce pressure on domestic financing sources.
Economists note that the key challenge will be how effectively the funds are deployed and whether Cameroon can strengthen revenue mobilisation and fiscal discipline to manage higher debt servicing costs over the medium term.
Official confirmation from the Ministry of Finance is expected in the coming days, which would clarify the final terms of the issuance and its place within Cameroon’s broader debt management strategy.
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