Côte d'Ivoire is reported on the international bond market. A first for a sub-Saharan African country since the formalization of covid-19 as a pandemic. Investors' response will be followed by many observers.

Côte d'Ivoire is again reported on the international debt market to mobilize resources, the Ecofin Agency learned from sources close to the process.

BNP Paribas, JP Morgan and Standard Chartered held calls on Monday with investors as arrangers and account holders. The country, which is coming out of a difficult presidential election and is still suffering the consequences of covid-19, is targeting two objectives.

On the one hand, it wants to mobilize new resources and finance its liquidity needs. The amount desired through this operation was not indicated.

At the end of February 2020, a statement from the Ivorian government spoke of a mobilization of $ 383.4 million. The information that filters for the moment is that of maturity that could exceed 10 years.

In addition, Côte d'Ivoire wants to take advantage of favorable market conditions to buy back $825 million of its international bonds maturing in 2025, 2028, and 2032.

This exit from the WAEMU's largest economy will be followed by all investors. This is the first time that a sub-Saharan African country has sought the international capital market since the officialization of covid-19 as a pandemic. The latest to do so is Ghana, which has mobilized nearly $3 billion. The Ivorian initiative comes as the case of Zambia, which is technically in default on its Eurobonds, continues to be analysed.

 
The tense presidential election in Côte d'Ivoire that resulted in the re-election of Alassane Ouattara does not seem to pose a problem for investors in the international capital market where international bonds are issued and traded. According to data compiled by Bloomberg, demand for the country's Eurobonds has increased, pushing their prices up 6.9% over the month of October, during which an election campaign full of uncertainties was taking place.

Finally, let us recall that with this decision, Côte d'Ivoire will no longer benefit from the debt service relief initiative proposed by the G20 to help poor countries, including several in Africa. One of the conditions imposed was that the country potentially eligible for the initiative undertake not to take out new commercial loans.

Ivorian leaders have had to be pragmatic. The benefit of the G20 initiative would not have provided the necessary resources for the post-covid-19 recovery, and its foreign currency liquidity needs for 2021.