A bond is defined as a security representing a debt contracted by a company, a local authority or a State with investors under predefined conditions (duration, interest rate, amortization). The prefix "euro" refers to an asset issued in a currency other than that of the country of issue or the local currency of the issuer. Eurobonds or Eurobonds are therefore bonds issued in a currency (currency) different from that of the issuing country.
In addition to the developing domestic financial markets, since 2006 African States have had recourse to the international debt market to mobilize substantial resources to finance major investment projects or to restructure their debt.
The borrower most often resorts to an investment syndicate made up of international banks to manage a Eurobond issue.
In the WAEMU zone, Eurobond issuance remained limited until 2019 to the two largest economies, Côte d'Ivoire and Senegal. The tables below provide information on the different Eurobond issues of these two countries.
|
EUROBOND EMISSIONS OF IVORY COAST |
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|
Characteristics |
2010 |
2014 |
2015 |
2017 |
2018 |
2019 |
|||
| Amount issued (in millions) |
2 300 |
500 |
1 000 |
1 250 |
500 |
850 |
850 |
850 |
850 |
|
Currency |
USD |
USD |
USD |
USD |
EUR |
EUR |
EUR |
EUR |
EUR |
|
Maturity (years) |
22 |
10 |
12 |
16 |
8 |
12 |
30 |
12 |
20 |
|
Coupon |
10,181 % |
5,375% |
6,375% |
6,125% |
5,125% |
5,250% |
6,625% |
5,875% |
6,875% |
|
EUROBOND EMISSIONS OF SENEGAL |
||||||
|
Characteristics |
2009 |
2011 |
2014 |
2017 |
2018 |
|
| Amount issued (in millions) |
200 |
500 |
500 |
1 100 |
1 000 |
1 000 |
|
Currency |
USD |
USD |
USD |
USD |
EUR |
USD |
|
Maturity (years) |
5 |
10 |
10 |
16 |
10 |
30 |
|
Coupon |
9,25% |
8,75% |
6,25% |
6,25% |
4,75% |
6,75% |
After Senegal and Côte d'Ivoire, both accustomed to international capital markets, Benin mobilized on March 19, 2019, 500 million euros in eurobonds with a 7-year maturity. This loan, amortizable over the last three years (2024, 2025, 2026), offers a coupon of 5.75%.
More recently, on November 23, 2020, Côte d'Ivoire launched the first sub-Saharan eurobond of the year for an amount of one billion euros, redeemable over 12 years with an interest rate of 5%.
CJEA