Ivory Coast Is Said to Plan Eurobond Sale of at Least $1 Billion

ABIDJAN (Capital Markets in Africa) – Ivory Coast is planning to sell at least $1 billion in Eurobonds as the West African nation weighs its finance needs against rising debt costs, according to three people familiar with the matter.

The world’s top cocoa grower, which budgeted to raise 1.44 trillion CFA francs ($2.5 billion) in debt in 2019, is reviewing the amount of securities it can sell on the regional market and will seek the remaining portion from offshore investors, said the people, who asked not to be identified because the information isn’t public. A Eurobond issuance is likely to be scheduled for May or June, said the people.

Sidi Toure, a spokesman for the government, couldn’t immediately comment when contacted by phone.

Following a sale of 1.7 billion euros ($1.9 billion) in bonds in March, Ivory Coast is considering a return to the market at a time when investors are demanding higher rates on African sovereigns, while an ongoing trade war between the world’s biggest economies are curbing appetite for risky assets. The average yield on dollar bonds of African countries climbed more than 160 points since the issuance in March, according to a Standard Bank Group Ltd. index.

The sale could be divided in tranches of as many as three currencies, including dollar, euro and franc-denominated securities, said the people.

Yields on the nation’s $1.25 billion of securities due in June 2033 climbed to a record high of 8.42 percent at the end of November. Rates on the notes, which were sold in 2017, have since declined, falling 2 basis points to 8 percent as of 8:30 a.m. in London on Monday.

Source: Bloomberg Business News