The Republic of Congo has completed a US$354 million buyback of its 2032 international bond, part of a strategy to improve its debt profile and ease near-term refinancing pressures, the Finance Ministry said.
The operation reduced the outstanding amount of the 2032 bond to US$575 million from US$930 million. The bond had been issued in two tranches in November and December 2025, marking Congo’s first return to international debt markets in nearly 20 years.
Christian Yoka, the Finance, Budget and Public Portfolio Minister, said the buyback underscores the government’s prudent financing strategy and supports debt sustainability over the medium to long term. According to the ministry, the transaction is expected to cut principal repayments due between 2026 and 2030 by US$214 million.
The ministry added that the buyback drew strong demand from a broad base of international investors, many of whom also participated in a new bond issuance earlier this month. On February 11, Congo raised $700 million through a 2035 bond with a 9.5 percent coupon, its longest-dated international offering to date. Amortisation will begin in 2031, with annual principal repayments thereafter.
Authorities said the February order book exceeded US$2 billion, attracting over 100 investors. The final yield was tightened by more than 200 basis points from initial guidance, reflecting strong market appetite. Proceeds from the 2035 issuance were primarily used to finance the partial buyback of the 2032 bond and repay regional market debt maturing in March 2026, easing short-term liquidity pressures and extending the average maturity of the debt portfolio.
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Congo first issued the 2032 bond for US$670 million in November 2025, later reopening it for about $260 million through private placements, bringing the total to US$930 million. The recent buyback and 2035 issuance mark the country’s gradual re-entry into global capital markets after nearly two decades.
Rated CCC+ by Fitch and S&P, Congo remains vulnerable to oil price swings, which constitute the bulk of its export revenue. Analysts note that the refinancing drive comes ahead of a presidential election on March 15, 2026, at a time of heightened scrutiny from investors. The government’s strategy aims to reinforce market confidence, manage refinancing risk, and improve debt sustainability while navigating political and economic uncertainties.
The Republic of Congo has historically relied on oil revenues to fund its fiscal needs, making the country highly exposed to fluctuations in global oil prices. Volatile oil earnings, combined with long periods of political uncertainty, have constrained public finances and limited access to international capital markets.
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Congo returned to the international debt markets in 2025 after nearly 20 years, issuing its first 2032 Eurobond in November 2025 for US$670 million, followed by a reopening of about US$260 million through private placements. These transactions marked the country’s initial step toward rebuilding investor confidence and accessing foreign financing after decades of limited external borrowing. The 2032 bond, issued in two tranches, was the first major international issuance since the country’s earlier debt crises, signaling a gradual normalization of Congo’s sovereign debt profile.
In February 2026, Congo issued a US$700 million 2035 Eurobond with a 9.5 percent coupon, its longest maturity to date, to refinance maturing regional market debt and partially buy back the 2032 bond. The strong demand for the 2035 issue exceeding US$2 billion from over 100 investors reflected renewed international confidence in the government’s fiscal management and refinancing plans.
Congo’s debt is rated CCC+ by Fitch and S&P, indicating high credit risk but manageable default prospects if fiscal and macroeconomic conditions remain stable. The government’s recent bond buybacks and strategic refinancing aim to reduce short-term principal repayments, lengthen the average maturity of debt, and lower refinancing pressure, while maintaining access to international markets.
The timing of the debt strategy coincides with heightened political uncertainty, as a presidential election is scheduled for March 15, 2026, which could influence investor sentiment. Analysts highlight that the success of these operations is closely tied to global oil prices, given that petroleum exports generate the majority of Congo’s foreign exchange and public revenue.
Overall, Congo’s recent bond buybacks and new issuances reflect a deliberate approach to debt management, combining market re-entry, liability restructuring, and careful liquidity planning to strengthen fiscal stability and maintain investor confidence amidst political and commodity-related risks.
