This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
Senegal’s Dollar Bonds Continue to Ease After Reports of Undisclosed Swap Borrowing
March 24, 2026
Senegal’s dollar bonds were trading weaker across the curve after an FT report noted that the country tapped €650mn via undisclosed total return swap (TRS) borrowings from Africa Finance Corporation (AFC) and First Abu Dhabi Bank (FAB) last year. The report said that the swap gave the two lenders privileges over existing bondholders. The TRS transaction occured just a few months after authorities uncovered about $7bn in previously undisclosed debt accumulated by the prior government. Senegal is currently aiming to renegotiate a $1.8bn bailout with the IMF. However, the IMF said that while it was aware of Senegal’s TRS with lenders, the terms of these swaps were not shared with them. This is especially important in the context of the IMF’s debt sustainability analysis of Senegal.
The bonds pledged under the TRS were issued in local currency i.e., CFA Franc which is pegged to the Euro, and were worth more than the value of the loans. The swap entered into was for up to €350mn and €300mn with AFC and FAB respectively, with both loans ending in 2028. If Senegal defaults on its debts before this, it faces a cash penalty. While Senegal recently made payments on its eurobonds, analysts still believe that external shocks could strain the country’s finances.
Senegal’s dollar bonds have dropped through the month – its 6.25% 2033s are down 12% MTD to trade at 54.9, yielding 17.5%.
For more details, click here
Go back to Latest bond Market News
Related Posts:
Credit rating boost for Ireland & Portugal: EU inches towards recovery
September 20, 2017
China Refutes S&P Downgrade Action
September 26, 2017
Mongolia’s Credit Ratings Upgraded to B3 by Moody’s
January 19, 2018
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.