Bond Market: Côte d'Ivoire Completes a 450 Billion CFA Francs Debt Exchange

Côte d'Ivoire has successfully finalized a bond exchange operation worth 450 billion CFA francs (approximately $746.7 million) on the West African Economic and Monetary Union (WAEMU) market. The transaction exceeded its initial target of 400 billion CFA francs and aimed to reschedule part of the country's 2025 debt repayments by offering investors new 5-year and 7-year bonds, with interest rates of 5.90% and 6%, respectively.

Facing repayment obligations totaling 5,635 billion CFA francs in 2025—including 2,000 billion CFA francs in domestic bonds and securities—the government sought to spread out its debt servicing to avoid a repayment peak. According to market sources, demand for the exchange was strong despite the offered yields being slightly lower than some existing bonds, which currently offer returns of up to 6.25%.

The exchange offer ran from February 19 to March 4 and was open to holders of bonds maturing between February and June 2025. The final amount of 450 billion CFA francs reflects higher-than-expected investor participation.

This operation is part of Côte d'Ivoire's proactive public debt management strategy, as the country’s debt-to-GDP ratio approaches 60%, still below WAEMU’s 70% threshold.

Despite an uncertain global economic environment, Côte d'Ivoire recorded a growth rate of 6.1% in 2024, according to the IMF. Inflation dropped to 2.1% in December. For 2025, the country aims to boost its growth to around 7%. The IMF is supporting this trajectory through a $3.5 billion program over 40 months to strengthen the country's macroeconomic fundamentals.

Source : Ecofin Agency