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African Eurobond Sales See Strongest Start to Year Since 2013

Pedestrians in the financial district in Nairobi.

Photographer: Kang-Chun Cheng/Bloomberg

By Ray Ndlovu

February 20, 2026 at 12:47 PM GMT+1

Eurobond issuance from sub-Saharan African countries is off to the strongest start to a year in more than a decade, as nations take advantage of lower borrowing costs and demand from investors diversifying out of US assets.

Dollar-denominated sovereign bond sales across the region reached $5.95 billion so far this year, the most since 2013. In the same period last year issuance stood at $1.8 billion.

Africa Eurobond Issuance Off to Strongest Start in 13 Years

Sovereign issuance is highest YTD since at least 2013

Source: Bloomberg

Note: Sovereign USD bond issuance by SSA nations YTD through Feb. 20

Kenya sold $2.25 billion of seven- and 12-year debt on Thursday, the biggest deal so far in 2026. Ivory Coast, Republic of Congo, Cameroon and Benin have also tapped the market as “a window of opportunity” stays open for African countries to borrow at relatively low interest rates, according to David Austerweil, deputy portfolio manager at Van Eck Global.

Read: African Nations Rush to Sell Dollar Bonds as Costs Drop

The average risk premium for African sovereign dollar bonds over US Treasuries has narrowed to 329 basis points, the lowest level in eight years, according to a JPMorgan Chase & Co. index. Senegal remains the sole distressed issuer on the continent, as nations take advantage of International Monetary Fund programs and improved credit ratings to push for better deals.

That’s enabled some, like Kenya and Congo, to use the proceeds of new issuance to buy back higher-interest debt, lowering overall borrowing costs. Citigroup Inc. has arranged a quarter of all deals in the region so far this year, according to data compiled by Bloomberg.

More issuance is in the pipeline. The Democratic Republic of Congo is expected to go to market for a maiden $750 million bond sale. Authorities from the continent’s biggest copper producer were in a non deal investor roadshow in London this month.

“There is definitely room for more issuance,” said Austerweil. “Deals still come with a premium and trade well in the secondary market. Right now, issuers and investors are both winning.”

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senegal payment mar 2026

 Markets

Senegal Secures Funding to Cover Eurobond Payments Due March

Ousmane Sonko

Photographer: Abdel Majid Bziouat/AFP/Getty Images

By Katarina Hoije

February 17, 2026 at 2:31 PM GMT+1

Updated on 

February 17, 2026 at 3:42 PM GMT+1

Takeaways by Bloomberg AI

• Senegal secured sufficient funding to meet eurobond payments due in March, easing investor anxiety about the government’s ability to service its dollar-denominated debt.
• The West African nation raised funding in regional debt markets and is on track to meet the almost $485 million of payments, according to people familiar with the matter.
• Senegal’s dollar bonds due 2048 and 2031 extended gains on the news, rising as much as 0.48 cent on the dollar to 57 cents and 1.3 cents on the dollar to 67.4 cents, respectively.

Senegal secured sufficient funding to meet eurobond payments due in March, according to people familiar with the matter, easing investor anxiety about the government’s ability to service its dollar-denominated debt.

The West African nation is on track to meet the almost $485 million of payments after it raised funding in regional debt markets, said the people who asked not to be identified because they’re not authorized to speak about the matter publicly.

A spokesperson for Senegal’s finance ministry declined to comment. An economy ministry spokesman wasn’t immediately available to comment.

Senegal’s dollar bonds due 2048 extended gains on the news, rising as much as 0.48 cent on the dollar to 57 cents at 2:38 p.m. in London. The sovereign’s dollar bonds due 2031 advanced 1.3 cents on the dollar to 67.4 cents and were among the top performers in emerging markets.

Next month will be a key test of whether Senegal can manage its debt without resorting to restructuring. Prime Minister Ousmane Sonko has repeatedly rejected calls to overhaul the country’s obligations, insisting the government can meet rising repayments by tapping regional loan markets.

Investor unease has shadowed President Bassirou Diomaye Faye’s administration since the discovery in 2024 of about $7 billion in previously undisclosed debt — including about $5 billion in external loans — accumulated by the previous government. That led the International Monetary Fund to suspend a $1.8 billion funding package.

Senegal lagged the broader rally in emerging market debt in January because of concern about its near-term liabilities. It’s the only African nation that remains in distress territory as its risk premium over US Treasuries trades at 1,151 basis points, according to JPMorgan Chase & Co. data.

Read More: Two African Debtors Exit Distressed Club, Leaving Only Senegal

The country must pay about $485 million on its eurobonds next month, part of about $1.3 billion of payments falling due across its obligations. The eurobond payments include a $33.8 million coupon on its 2048 debt, a €333.3 million ($394 million) principal repayment on its 2028 euro-denominated bond, and a €47.5 million coupon on that issue, according to data compiled by Bloomberg.

Morgan Stanley said last week that at least some of its clients were unsure about whether Senegal would be able to make the payments.

In the first five weeks of 2026, the government raised 510 billion CFA francs on the regional market and plans to offer another 490 billion CFA francs before the end of the first quarter, Senegalese budget documents and data from the regional UMOA-Titres debt market show. Successful auctions would provide more than enough liquidity to cover the payments that must be made in March.

“They are fine for March eurobond payments as they exceeded” debt auction targets so far this year, “but they have only been able to keep a lid on bond yields mostly by shifting issuance sizes towards bills,” said Mark Bohlund, senior credit analyst at REDD Intelligence. “That could cause a problem in the second half of the year.”

Beyond the funding raised in the region, the government also last week secured a €630 million trade-finance facility from the International Islamic Trade Finance Corp., bolstering funding for imports of essential commodities.

Read More: Senegal Lands €630 Million Deal With ITFC for Commodities

Senegalese dollar bonds maturing in 2028, which traded at an almost one-third discount to par in December amid concerns about credit-rating downgrades, delays in securing a new IMF program and fears of a potential restructuring, have made a strong comeback this year and almost recovered all of their losses.

— With assistance from Srinivasan Sivabalan, Kerim Karakaya, and Ray Ndlovu

(Updates with bond market reaction in fourth paragraph