The Government of Senegal has raised 364 billion CFA francs, equivalent to about $644 million, in its second public bond offering of 2025. The latest fundraising effort exceeded the country’s initial target of 300 billion CFA francs, according to a statement from the Senegalese Ministry of Finance released on Tuesday. The bond issuance, which opened on June 19 and closed on July 8, was organised by CGF Bourse, with Societe Generale Senegal serving as the co-lead arranger.
The bond sale is part of Senegal’s strategy to diversify the sources of funding for its national budget, strengthen the domestic capital market, and manage the country’s public debt profile. The Senegalese government said the strong performance of the bond offer reflects growing investor confidence in the country’s economic direction despite prevailing concerns about its rising debt.
Over the past year, Senegal’s debt levels have drawn criticism and concern from financial analysts and international observers. In September last year, the government disclosed that it had up to $14 billion in previously unreported debt, an amount that significantly raised the country’s debt-to-GDP ratio. The revelation pushed Senegal’s debt ratio close to 120 percent of its gross domestic product, positioning the West African country among the most indebted nations in Africa.
However, the Ministry of Finance said the latest bond issuance was oversubscribed by 21.3 percent, a sign of strong demand from both domestic and regional investors. The ministry said the positive investor response underlines confidence in Senegal’s economic resilience and commitment to financial reforms. “In a challenging economic environment, this fundraising effort enhances the credibility of Senegal’s financial signature,” the statement said.
Proceeds from the bond sale will be channelled towards supporting public finance recovery, implementing economic stimulus measures, and optimising the servicing of existing debts. The government also noted that the securities are eligible for refinancing, which will boost liquidity in Senegal’s banking sector and provide financial institutions with more flexibility.
Senegal’s growing appetite for the regional capital market has become evident as global credit conditions tighten and debt servicing costs rise. Since starting oil and gas production in 2024, the country has been under pressure to find reliable financing methods to support economic growth and infrastructure development. Oil and gas revenues are expected to help the country stabilise its finances, but debt challenges remain a critical issue for the administration.
To address the rising debt ratio, Senegal’s finance ministry announced that the government has started recalculating its gross domestic product using a new base year. This statistical update, known as GDP rebasing, is expected to provide a more accurate measure of the country’s economic size and improve its debt metrics. Financial analysts from Barclays Bank have estimated that the rebasing could increase Senegal’s 2024 nominal GDP by between 15 to 25 percent. This increase could bring the debt-to-GDP ratio down to around or even below 100 percent, reducing concerns about the country’s debt sustainability.
Senegal’s move to rebase its GDP comes shortly after S&P Global downgraded the country’s sovereign credit rating to B- and assigned a negative outlook. The downgrade reflected growing fears over Senegal’s high debt levels and its ability to manage them effectively. The negative outlook also signals the possibility of a further downgrade if the debt burden continues to grow without sufficient economic expansion to offset it.
Despite these challenges, the successful bond offering signals that investors still have faith in Senegal’s long-term economic prospects. The government remains under pressure to ensure that the funds raised are utilised effectively to drive economic recovery, create jobs, and strengthen public finances. Analysts say that sustained reforms, transparent debt management, and the strategic use of oil and gas revenues will be critical for Senegal to restore confidence in its economy and maintain access to financing.
