Ivory Coast raises $1.3 billion via international bond issue

The West African nation, which is the world’s largest cocoa producer, is a prolific issuer having been among the first to tap international markets in 2024 after a two-year hiatus for frontier African issuers caused by high interest rates. It also issued a local currency-denominated bond in international markets last year, as it presses ahead with a push to manage liabilities through a mix of buybacks and new issues to smooth out its repayment schedule. The bond comes with a noticeably low interest rate of 5.39% in euros after a hedging operation, the finance ministry said, adding that the cash will be used to finance this year’s budget.

Ivory Coast is among the fastest-growing economies in the region and its international bonds are some of the best performing in Africa. It has also diversified its funding sources in recent years with a debt-for-education swap in 2024 and sustainability-linked loan last year. It issued an ESG-certified Japanese samurai bond last July and it is in the middle of an Asian syndicated loan debut according to IFR.