Senegal has launched its first public bond issuance of 2026 aimed at raising 200 billion CFA francs (US$362 million) as the government turns to regional financing markets amid ongoing challenges linked to a debt misreporting dispute.
In a statement released on Thursday, Senegal’s finance ministry said the bond sale would help finance the country’s 2026 budgetary requirements, as authorities continue efforts to stabilise public finances and maintain development spending.
The West African nation has increasingly relied on regional capital markets and domestic investors after access to concessional international financing was disrupted following the suspension of support from the International Monetary Fund.
The IMF halted its US$1.8 billion three-year lending programme in 2024 after Senegal’s new administration uncovered billions of dollars in previously unreported public debt, triggering concerns over fiscal transparency and debt sustainability.
Since then, the government has sought alternative funding sources, including bond issuances targeted at retail and institutional investors within the West African regional financial market.
The latest bond offer, arranged by investment firm Invictus Capital, includes four maturity tranches of three, five, seven and ten years, with coupon rates ranging between 6.4 percent and 6.95 percent.
Authorities said funds raised through the issuance would support government operations and ongoing public investment programmes under the 2026 fiscal framework.
The subscription period for investors opened on Thursday and is scheduled to run until March 19, giving both institutional and individual investors an opportunity to participate in the offering.
More Read
Senegal, long considered one of West Africa’s more stable economies, has faced increased scrutiny following revelations that the country’s debt levels were significantly higher than previously reported.
According to IMF estimates, Senegal’s public debt reached approximately 132 percent of gross domestic product (GDP) at the end of 2024, sharply raising concerns among international lenders and credit markets about fiscal sustainability.
Negotiations between Senegalese authorities and the IMF are ongoing, with both sides working toward resolving the debt misreporting issue and establishing a new economic reform programme that could restore access to multilateral financing.
Analysts say continued access to the regional debt market has provided Dakar with a critical financing buffer while discussions with international partners continue.
However, reliance on regional borrowing often comes with relatively higher interest costs compared with concessional multilateral loans, potentially increasing debt servicing pressures in the medium term.
Despite these challenges, Senegal’s authorities have reiterated their commitment to improving fiscal transparency, strengthening debt management practices and restoring investor confidence.
The government is also seeking to preserve economic momentum supported by infrastructure investment, energy sector development and anticipated revenues from recently launched oil and gas production projects.
Market observers note that investor appetite for the bond issuance will serve as an important indicator of regional confidence in Senegal’s economic management as the country works to rebuild credibility with international financial institutions.
The outcome of ongoing negotiations with the IMF is expected to play a decisive role in shaping Senegal’s future financing strategy and broader macroeconomic outlook in the coming years.
