2024-02-07 12:56:56
Benin has achieved an unprecedented fundraising round in its history by raising more than 750 million dollars on the international financial market.
The operation was closed on Tuesday February 6, 2024. According to a press release from the Ministry of Economy and Finance, it constitutes Benin’s first successful issue in the dollar segment of the international bond market. This operation which covers a maturity of 14 years “makes Benin the third best credit in Africa in US dollars behind Morocco and South Africa”, according to the Ministry of the Economy and Finance.
More than 200 convinced investors
To succeed in the unprecedented operation, the Beninese government stood out in international financial markets at the beginning of the month in order to convince potential investors. Between February 1 and 5, a Beninese delegation led by Minister Romuald Wadagni lined up three days of marketing from London to New York to investors. At least 150 of the latter were met by Beninese representatives in the run-up to the operation. “The strong interest generated by this inaugural dollar transaction translated into considerable demand, with the participation of more than 200 international investors,” specified the Ministry of Economy and Finance.
This fundraising will allow Benin to continue to finance the development projects contained in the Government Action Program (PAG), the second phase of which has been implemented since 2021. In the short term, the funds mobilized will be used to cover a large part of Benin’s financing needs in 2024, while preserving the quality of the country’s public debt portfolio, reassured the Ministry of Economy and Finance in its press release.
International financial markets
In recent years, Benin has distinguished itself by its successes on international financial markets, alongside its recourse to the sub-regional market. In July 2021, Benin successfully completed its first issue of international bonds dedicated to financing projects with a high impact on achieving the United Nations Sustainable Development Goals, the first for an African state. The operation made it possible to mobilize an amount of 500 million euros (328 billion FCFA), with a repayment deadline set in 2035.
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