Senegal Makes $471 Million Payments to Service Foreign Bonds
Dakar, Senegal.
Photographer: Damian Lemański/BloombergTakeaways by Bloomberg AI
- Senegal has paid coupons and principal on its foreign bonds ahead of this Friday’s deadline, avoiding a potential default as the nation seeks aid from the International Monetary Fund.
- The West African country’s central bank transferred €380 million to the holders of its 2028 euro-denominated notes and $33 million on dollar notes maturing in 2048.
- Officials in Dakar describe the March 13 payments issue as “closed,” and at least four bondholders are aware that the authorities have made the payment and are waiting for the funds to show up in their accounts.
Senegal has paid coupons and principal on its foreign bonds ahead of this Friday’s deadline, avoiding a potential default as the nation seeks aid from the International Monetary Fund, people familiar with the situation said.
The West African country’s central bank transferred €380 million ($438 million) to the holders of its 2028 euro-denominated notes last Friday, the people said, asking not to be identified discussing the payment details. It also paid $33 million on dollar notes maturing in 2048, they said.
Officials in Dakar, the capital, describe the March 13 payments issue as “closed,” one of the people added. At least four bondholders said they are aware that the authorities have made the payment and are waiting for the funds to show up in their accounts by the end of this week.
The transfers are done via custodian banks, which usually means there’s a slight delay, one of the holders said. Spokespeople at Senegal’s finance ministry and central bank declined to comment.
By submitting my information, I agree to the Privacy Policy and Terms of Service.
The coupon payment comes as the government in Dakar seeks to restart IMF aid, suspended after the discovery in 2024 of about $7 billion in previously undisclosed debt — including about $5 billion in external loans — which were accumulated by the previous administration. Senegal has relied on funding from a regional market for West African nations to gain the financing to service its foreign-currency bonds.
Read More: Senegal Secures Funding to Cover Eurobond Payments Due March
Senegal is Africa’s riskiest sovereign credit, with its dollar bond yields trading more than 12 percentage points over comparable US Treasuries, according to JPMorgan Chase & Co. index. The 2028 euro-denominated bond traded around 69 cents on the euro on Thursday, down about 10 cents from this week’s high after the coupon payment was made.
The Next Africa newsletter runs every weekday. Sign up here for the newsletter, and subscribe to the Next Africa podcast on Apple, Spotify or anywhere you listen.
— With assistance from Kerim Karakaya
Keine Kommentare:
Kommentar veröffentlichen