West Africa

Benin Raises $750 million in First-ever Dollar Donds as Demand Hit $5 billion

Benin Republic issued first dollar-denominated bonds (14-year bond) and recorded an oversubscription at $5 billion, even though it only tapped $750 million to demonstrating strong investor confidence in the country’s macroeconomic forecast.

The country’s 2024 budget would be financed using the revenues from the 14-year bonds, which were issued at an 8.375% interest rate, according to Finance Minister Romuald Wadagni.

This bond sale happened soon after the Ivory Coast’s $2.6 billion oversubscribed Eurobond auction.

The yield rates on the Benin bonds closely resemble those of some of the bonds issued by Ivory Coast on the international bond market.

Gemcorp Capital Management’s chief economist, Simon Quijano-Evans, told clients he was surprised that Benin was offering its first USD external bond with a yield that was as low as or lower than that of an equal USD bond from the Ivory Coast.

Important Points

Over the 2024–25 timeframe, the Benin Republic—one of Sub-Saharan Africa’s economies with the quickest rate of growth—is expected to see average GDP growth of 6.4%.

Strong macroeconomic stability has been shown by the nation, as evidenced by the inflation rate, which increased little from -0.20% in November 2023 to 0.40% in December 2023.

Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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