Benin Republic successfully issued its first-ever dollar-denominated bond, raising a substantial $750 million. The bond offering witnessed overwhelming investor interest, being oversubscribed by an impressive $5 billion.
The Finance Minister of Benin, Romuald Wadagni, revealed that the proceeds from this 14-year bond, issued at a rate of 8.375 percent, will be utilized to finance the country’s 2024 budget.
The success of Benin’s bond issuance surprised market observers, with the Chief Economist of Gemcorp Capital Management, Simon Quijano-Evans, noting the unexpected demand. He remarked, “Who would have thought that Benin would be able to issue its debut USD external bond at a yield flat to or even below what an equivalent Ivory Coast USD bond was trading at earlier today?”
Despite being a relatively small West African nation, Benin has demonstrated its economic prowess, boasting one of the fastest-growing economies in Sub-Saharan Africa.
Source: Parrot Nigeria