Ivory Coast has raised US$1.3 billion through a 15-year Eurobond, the finance ministry said late on Wednesday, with the issue oversubscribed nearly five times in a sign of sustained investor appetite for the West African economy.
The bond carries a final maturity of 15 years and, following a hedging operation, comes with an effective interest rate of 5.39 percent in euros, the ministry said. Proceeds will be used to finance the 2026 budget.
The deal underscores Ivory Coast’s position as one of sub-Saharan Africa’s most active sovereign issuers. The country was among the first frontier African borrowers to return to international capital markets in 2024 after a two-year hiatus triggered by elevated global interest rates and tighter financial conditions.
Investor demand for the latest issue was strong, reflecting confidence in the country’s macroeconomic outlook and debt management strategy. Officials said the nearly fivefold oversubscription demonstrated market trust in Ivory Coast’s growth trajectory and fiscal reforms.
Ivory Coast, the world’s largest cocoa producer, is among the fastest-growing economies in West Africa. Its Eurobonds have ranked among the continent’s best performers in recent years, supported by steady economic expansion, infrastructure investment and relative political stability compared with some regional peers.
The government has pursued an active liability management strategy aimed at smoothing out its repayment profile and reducing refinancing risks. In addition to issuing new debt, it has carried out buybacks and swaps to manage maturities and contain borrowing costs.
Last year, Ivory Coast also issued a local currency-denominated bond in international markets, part of efforts to diversify its investor base and limit exposure to foreign exchange risk. Authorities have said broadening funding sources remains a priority as global financing conditions remain volatile.
The country has increasingly turned to innovative financing instruments. In 2024, it concluded a debt-for-education swap designed to channel savings from debt restructuring into social spending. It also secured a sustainability-linked loan tied to environmental and development targets.
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In July last year, Ivory Coast issued an environmental, social and governance (ESG)-certified Japanese samurai bond, further expanding its presence in Asian capital markets. According to IFR, it is currently in the process of arranging its debut Asian syndicated loan.
Analysts say the combination of conventional Eurobond issuance and alternative financing tools reflects a broader strategy to maintain market access while aligning borrowing with development goals.
Despite relatively strong growth, Ivory Coast faces challenges common to many frontier economies, including exposure to commodity price fluctuations and vulnerability to shifts in global investor sentiment. Cocoa exports remain a major source of foreign exchange earnings, leaving the economy sensitive to swings in global demand and prices.
However, robust infrastructure development, including roads, ports and energy projects, has supported domestic demand and bolstered medium-term growth prospects. Authorities have said maintaining investor confidence through prudent fiscal management remains central to their strategy.
The successful Eurobond sale comes at a time when several African sovereigns are cautiously testing international markets amid easing global monetary conditions. For Ivory Coast, the transaction provides additional fiscal space while reinforcing its reputation as a benchmark issuer in the region.
The finance ministry said the funds would be directed toward financing this year’s budget, without providing further details on specific allocations.
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With strong demand and competitive pricing, the latest bond issue signals that investor appetite for select African credits remains intact, particularly for economies seen as reform-oriented and growth-driven.
Ivory Coast has emerged over the past decade as one of sub-Saharan Africa’s most consistent growth stories, underpinned by large-scale infrastructure investment, agricultural exports and relative political stability following years of unrest in the early 2000s.
The country is the world’s largest cocoa producer, accounting for roughly 40% of global supply. Cocoa exports remain a cornerstone of foreign exchange earnings and fiscal revenues, although authorities have sought to diversify the economy into sectors such as energy, mining, agro-processing and services.
Since 2012, Ivory Coast has recorded strong annual economic growth, frequently outperforming regional peers in West Africa. Even during periods of global uncertainty — including the COVID-19 pandemic and subsequent tightening of global financial conditions — the country maintained comparatively solid expansion, supported by public investment and domestic demand.
On the financing front, Ivory Coast has built a reputation as one of Africa’s most regular and sophisticated sovereign issuers on international markets. It first tapped the Eurobond market in 2014 and has since returned multiple times, establishing a yield curve across different maturities.
However, between 2022 and 2023, many frontier African issuers stepped back from global markets as rising interest rates in advanced economies drove up borrowing costs. During that period, several African sovereigns faced debt distress or restructuring, prompting investors to reassess risk across the continent.
Ivory Coast was among the first to regain market access in 2024, signaling renewed investor confidence in its fiscal management and macroeconomic stability. The government has pursued an active debt management strategy aimed at smoothing its repayment schedule and reducing refinancing risks through buybacks, exchanges and diversified issuance.
Authorities have also sought to broaden funding sources beyond traditional Eurobonds. In recent years, Ivory Coast has issued local currency-denominated bonds in international markets, secured sustainability-linked loans tied to development targets, and completed a debt-for-education swap to channel resources into social spending.
The country has also tapped Asian markets, including through an ESG-certified Japanese samurai bond, reflecting efforts to diversify its investor base geographically and instrument-wise.
Despite its strong growth profile, Ivory Coast remains exposed to external risks. Fluctuations in cocoa prices, shifts in global liquidity conditions and currency volatility can affect fiscal balances and debt sustainability. As a member of the West African Economic and Monetary Union (WAEMU), it uses the CFA franc, which is pegged to the euro — a factor that provides exchange rate stability but limits independent monetary policy.
Public debt has risen in recent years due to sustained infrastructure spending, though officials argue that borrowing has been directed toward growth-enhancing projects. The government maintains that keeping debt at sustainable levels while financing development priorities remains central to its economic policy.
The latest $1.3 billion Eurobond fits into this broader strategy of maintaining market access, managing liabilities proactively and supporting budget financing while seeking to preserve investor confidence in one of West Africa’s largest economies.
