Senegal’s government has successfully raised 364 billion CFA francs ($644 million) through its second bond issuance of 2025, surpassing its initial target of 300 billion CFA by more than 21%, signaling strong investor confidence despite growing worries about the country’s debt burden. The fundraising round, held between June 19 and July 8, was led by CGF Bourse, with Société Générale Senegal serving as co-lead arranger. Participation came largely from domestic and regional investors within the West African Economic and Monetary Union (WAEMU), highlighting continued support for Senegal’s economic recovery agenda.
Funds from the bond will be channeled into public finance stabilization, economic stimulus programs, and debt servicing obligations. The bonds are also eligible for refinancing with the Central Bank of West African States (BCEAO), helping boost liquidity across the local banking system. The successful issuance comes at a delicate moment. The Senegalese government recently disclosed hidden liabilities—off-balance-sheet debts and payment arrears—totaling up to $14 billion, raising its debt-to-GDP ratio to nearly 120%, well above regional thresholds.
In a bid to soften debt ratio figures, Senegal has begun rebasing its GDP using a more current base year. Economists at Barclays estimate that the new GDP figures could boost the nominal economy by 15% to 25%, potentially lowering the debt-to-GDP ratio below 100%—still high, but less alarming to markets. This latest bond offering is part of Senegal’s broader strategy to diversify financing sources amid tightening global credit conditions. By turning more toward regional capital markets, Dakar hopes to reduce dependence on expensive external loans.
However, concerns persist. In June, S&P Global downgraded Senegal’s sovereign credit rating to B- with a negative outlook, citing fiscal slippages and increased uncertainty over the country’s debt transparency and repayment ability. Still, the bond’s oversubscription points to investor optimism that the government can balance reforms with much-needed economic support—even as it faces an uphill climb to restore fiscal credibility.
