Cotonou prepares its first bond issue on the international market

Romuald Wadagni, Minister of Finance of Benin

Benin is preparing for the launch of a bond issue on the international debt market. The operation will be, for the country, the first incursion on the bond markets outside the WAEMU zone.

According to information, Cotonou will try to mobilize more than 9,000 billion CFA francs, the equivalent of 13.8 billion euros for the implementation of its action program. The precise amount of the transaction is not yet known, but it will be denominated in euros and will have a maximum maturity of 8 years, according to sources quoted by the press.

With a GDP debt ratio estimated at 50% at the end of 2016, ie 20 percentage points below the threshold of 70% retained in the framework of the UEMOA convergence, stability, growth and solidarity pact – of which it is is a member-, Benin has an economy dominated by the tertiary sector. Its geographical location favors a high contribution to the GDP of the services sector, notably through commercial, transport, transit and tourism activities with neighboring States.

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