Francophone Africa powers tap bond markets

Ivory Coast sold its first Eurobond in almost seven years via an issuance that drew $8bn while Senegal is set to issue a treasury bond in the domestic market.

Author

Anthony Miclet
January 31, 2024

Good morning! South Africa’s BRICS membership appears to be paying off already after Saudi Arabia lifted a meat import ban imposed nearly two decades ago. 

The Middle East powerhouse only joined the economic bloc this month, along with Egypt, the United Arab Emirates, Iran, and Ethiopia.

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Now Open: 200bn FCFA treasury bond issuance by Senegal!

Senegal is set to issue 200bn CFA francs ($330m) treasury bonds in three tranches attracting significant investor interest.

With the West African nation boasting one of the continent’s and the world’s fastest-growing economies, investors in our community are excited about the opportunity!

Read on or tap the button below to learn more.

Here are last week’s top stories

New highs

For the first time in history, NGX ASI cross 100,000 points

Nigeria’s stock market has sustained its bullish momentum, returning nearly 37% year-to-date as of Friday. The South African FTSE/JSEASI was the only other index that closed the week positively.

During the week, Dangote Cement shares surged 9.99% to propel its market cap to over N10tr (~ $10bn)—the first Nigerian company to achieve this feat—and Aliko Dangote’s net worth to a decade-high of $22bn.

Bitcoin closed the week negative but on Monday, the 10 spot bitcoin ETFs saw their first net inflows in one week, helping to send the price of bitcoin to its highest level since the day after the funds began trading.

Record return

Ivory Coast raises $2.6bn in record-setting Eurobond issuance

Francophone West Africa’s largest economy, Ivory Coast, made a successful return to the international Eurobonds market, raising $2.6bn through two bonds with maturities of nine and 13 years.

The bond issuance attracted over 400 investors, generating an order book exceeding $8bn, setting a new record in West Africa.

The newly issued bonds have interest rates of 6.30% and 6.85%, with a currency hedge operation resulting in an average interest rate of 6.61%.

Regional setback

Military-led Niger, Mali, and Burkina Faso quit Ecowas

Niger, Mali, and Burkina Faso on Sunday announced a withdrawal from ECOWAS due to dissatisfaction with sanctions imposed in response to recent coups in their respective countries.

The leaders of these Sahel nations criticize the regional bloc, citing the organization's failure to provide adequate support in their ongoing struggles against terrorism and insecurity.

The departure marks a rupture in the longstanding relationship between the junta-led West African states and the regional economic community, scuppering the continent’s regional integration efforts.

Headline roundup

A summary of the major business, tech, and finance headlines of the past week.

Macro & Markets

VC Funding & Startups

Other Deals & Expansion

Funds & Accelerators

Startup Opportunities

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AFCON Roundup

The quarter-finals of the 2023 CAF Africa Cup of Nations are set. Image credit: Fabrizio Romano/Twitter

The Quarter Finals are set: No Senegal, no Morocco, no Egypt, no Ghana, no Cameroon, no Algeria, no Tunisia.

Nigeria and Ivory Coast have made it to the quarterfinals and so too, another previous winner in South Africa now.

But there has been some uprising in Africa from their smaller nations at this year’s AFCON.

Could Mali Cape Verde, Angola, Guinea, or DR Congo be about to write their names in history at the 2023 AFCON?

Follow Daba’s coverage of every game on our Instagram & X (Twitter) pages!

Our insight for the week

Get more context into events shaping Africa’s economic landscape.

President Macky Sall of Senegal

Five reasons why investors are excited about Senegal’s 200 billion CFA francs ($330 million) treasury bond issuance:

1. Quality of the Issuer: Global credit rating agencies Standard & Poor’s and Moody’s classify Senegal at investment grade levels B+ and Ba3 respectively, underscoring the country’s improving creditworthiness. 

The IMF also forecasts Senegal, already WAEMU’s second-largest economy, to record Africa’s second-highest economic growth rate this year and the world’s fifth.

2. Steady Income Stream: Like most government bonds, Senegal’s offering will provide investors with regular interest payments over the lifespan of the bond, enabling a steady stream of income.

3. Low Default Risk: Backed by a sovereign government, sovereign bonds like Senegal’s pose extremely little default risk compared to corporate paper. While corporate bonds offer juicy yields, they are only as reliable as the issuing company’s financial health.

CLICK HERE or tap the button below to discover the last two!

Disclaimer: This content has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained therein should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product.

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