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Ph:DR: Romuald WADAGNI the Minister of Economy and Finance
The yield of the issue, concluded on February 6, 2024, makes Benin the third best credit in Africa in US dollars, behind Morocco and South Africa. This is the first issue in the history of Benin on the dollar segment of the international bond market, for an amount of $750 million with a final maturity in 2038.
This operation marks a new stage in Benin’s financing strategy, contributing to the expansion of the country’s investor base. The funds mobilized will be used to finance projects with high development impact from the Government Action Program, which has entered its second phase since 2021.
This unprecedented operation for Benin follows three days of marketing in London and New York between 1is and February 5, 2024, during which a delegation from the Republic of Benin was able to meet more than 150 international investors.
The strong interest generated by this inaugural dollar operation translated into considerable demand, with the participation of more than 200 international investors. Thanks to this dollar opportunity, several dozen American investors are participating in a Beninese international issue for the first time.
The order book reached a peak of $5 billion during the day, i.e. a subscription 10 times higher than the amount initially announced to the market. This is the highest subscription rate ever achieved by Benin on the international capital markets. The interest shown by investors made it possible to compress the issue yield by 50 basis points during the issue day.
The Authorities welcome the high quality of the order book, where the world’s largest asset managers are represented.
The funds mobilized allow Benin to cover a large part of the financing needs for the year 2024, while preserving the quality of the debt portfolio. (Source: Gov.bj)
