Senegal’s regional debt auction brings in $254 million as yields rise
Senegal successfully raised 154 billion CFA francs ($254 million) in a regional debt auction on Friday, with investors pursuing higher yields across various maturities, according to data from the regional debt agency UMOA-Titres.
The West African nation, facing significant debt challenges, successfully raised 71.46 billion CFA francs via a 12-month BAT treasury bill, despite receiving bids amounting to 87.14 billion CFA francs.
The weighted average yield was recorded at 6.96%, with the marginal rate at 6.92%, indicating a rise in short-term borrowing costs.
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The interest in longer-dated bonds was lackluster. A 36-month OAT treasury bond received bids totaling 65.89 billion CFA francs, with almost the entire amount accepted at a weighted average yield of 7.28%.
A 60-month OAT Treasury bond attracted 16.65 billion CFA francs in bids, all of which the treasury accepted in full. The bond was cleared at a weighted average yield of 7.69%, which is the highest among the three instruments.
Senegal has turned more towards the domestic and regional market to meet its financing needs following the suspension of its $1.8 billion three-year programme by the International Monetary Fund (IMF). This decision came after the current leadership revealed billions of dollars in borrowing that had not been reported by the previous administration.
The Fund reported that Senegal’s debt burden reached 132% of gross domestic product by the end of 2024.
