Ivory Coast has opened a 400 billion CFA francs ($724.97 million) domestic bond sale to finance unspecified investment projects, according to deal arranger NSIA Capital. The offer, which opened on Tuesday and runs until 9 March, is split into two tranches: a 250 billion CFA francs issuance with a seven-year maturity and a 5.85 percent coupon, and a 150 billion CFA francs tranche with a 10-year maturity and a 6 percent coupon.
The bonds are priced in units of 10,000 CFA francs ($18.12) and are available to investors across the West African Economic and Monetary Union (WAEMU). They will be listed on the Bourse Régionale des Valeurs Mobilières (BRVM), the regional stock exchange. The world’s largest cocoa producer plans to raise a total of 4.221 trillion CFA francs ($7.69 billion) from the regional market this year, according to a government official, underscoring its reliance on domestic capital markets to fund development priorities amid global financing constraints.
The bond sale forms part of Ivory Coast’s broader strategy to mobilise local currency financing for infrastructure and social projects. By tapping the deep liquidity of the WAEMU regional market, which pools savings from eight West African countries, Abidjan can access long-term funding in its own currency, avoiding the exchange rate risk associated with foreign currency debt. The 5.85 percent and 6 percent coupons are attractive relative to regional inflation and benchmark rates, reflecting investor confidence in Ivory Coast’s creditworthiness.
Ivory Coast has been one of West Africa’s fastest-growing economies, with average GDP growth exceeding 6 percent in recent years, driven by public investment, agricultural exports, and a diversifying services sector. The government’s ability to raise substantial sums on domestic markets reduces dependence on external creditors and provides flexibility in financing its development agenda.
The success of the bond sale will be closely watched as an indicator of regional investor sentiment toward Ivorian risk. With global interest rates remaining elevated and access to international capital markets constrained for many emerging economies, the depth and resilience of WAEMU domestic markets have become increasingly important for member states’ financing strategies.
