UMOA Bonds: Côte d’Ivoire Raises CFA 66 Billion Amid Rising Yields

On March 3, 2026, Côte d’Ivoire successfully raised CFA 66 billion on the UEMOA bond market, slightly surpassing its initial target of CFA 60 billion. This operation takes place in the context of a moderate rise in interest rates, while confirming the country’s status as a premium issuer in the region.

Demand Focused on the Short Term

The issuance attracted significant interest, with total bids reaching CFA 98.3 billion, representing a coverage ratio of 163.83%. However, the Ivorian government was selective, accepting only 67.14% of the offers and rejecting CFA 32.3 billion considered too expensive.

The operation was heavily concentrated on the 3-year maturity, which absorbed CFA 65.8 billion of the CFA 66 billion raised (99.7%). The 7-year bond attracted only a single bid of CFA 200 million, fully accepted, while no bids were received for the 5-year line. This unusual distribution reflects a marked investor preference for medium-term maturities in the current environment.

Slight Deterioration in Financing Conditions

For the 3-year maturity, Côte d’Ivoire now borrows at a weighted average yield of 7%, up 11 basis points from 6.89% achieved just a week earlier (February 24).

The increase is more pronounced for the 7-year bond, with a yield of 7.30% versus 5.90% in the previous operation (+140 basis points). This sharp rise likely reflects tensions in the long-term maturities across the region, although the effect is limited given the small volume involved (CFA 200 million).

Strong Regional Positioning Maintained

Despite this slight deterioration, Côte d’Ivoire maintains a substantial competitive advantage. At 7% on the 3-year bond, the Ivorian issuer remains well below Senegal (7.64%-7.89% last week), Burkina Faso (7.63%), and even Sahelian states such as Niger (9.87%-10.07%) and Guinea-Bissau (9.61%).

This 64-89 basis point gap with Senegal and nearly 300 basis points with weaker states confirms regional investors’ differentiated perception of sovereign risk, placing Côte d’Ivoire firmly in the premium issuer category within the UEMOA region.

Predominantly Domestic Demand

Geographically, demand was mainly domestic, with CFA 63.8 billion raised from Ivorian investors, representing 96.6% of the total accepted. Only Burkina Faso participated with a CFA 2 billion bid fully absorbed on the 3-year line. This pattern suggests that the issuance primarily mobilized local liquidity, while regional investors may have favored other opportunities or maturities.

Outlook

This tenth issuance of the year brings Côte d’Ivoire’s cumulative 2026 bond issuance to CFA 1,633 billion as of March 2. The slight rise in yields reflects a regional trend of normalization after the low levels seen at the end of 2025. Nevertheless, Côte d’Ivoire continues to demonstrate its capacity to raise large volumes on highly favorable terms compared with most regional peers, reflecting solid macroeconomic fundamentals and investor confidence.