Ivory Coast raised 1 billion euros in Eurobond sale
December 4, 2020
On November 27, the Republic of Côte d'Ivoire issued the first Eurobond amid Sub-Saharan Africa since the escalation of the pandemic. The Eurobond with a repayment rate of 4.875% and outstanding face value amount of 1 billion EUR (just under 600 billion CFA franc) was oversubscribed five times.‼️
For the Minister of Economy and Finance, since Ivory Coast has access to international capital markets, the rate of 4.875% is the lowest ever proposed before. The low rate is achieved due to positive macroeconomic indicators: low budget deficit, inflation rate of 3.1%, and Consumer Price Index near 106 b.p.
Sub-Saharan Africa had seen no debt sales since Ghana placed three Eurobonds and Gabon sold securities earlier this year before the coronavirus pandemic expanded over the globe.
Probably such a good placement will induce recovery of investor confidence in a region that has lagged in returning to the market after the pandemic shock, and other sovereigns will follow Cote d'Ivoire in issuing Eurobonds in 2021.
Country of riskCote d`Ivoire
Redemption (put/call option)
М/S&P/F— / — / —
Company — Cote d`Ivoire
Full nameRepublic of Cote d'Ivoire