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Senegal’s dollar bonds fell by nearly 2 points on Thursday, amid growing concerns over a potential debt restructuring. BofA analysts in a note, said that they were “pessimistic” regarding Senegal’s ability to avoid a debt restucturing. They added that the debt overhaul could occur by the second half of 2026 without meaningful expenditure cuts, with an average recovery value close to $40. Analysts note that a new IMF program is now dependent on a debt sustainability analysis and Senegal’s commitment to putting its public finances on a sustainable path, despite the authorities’ public stance that they do not want to reorganize their debt.
Senegal’s 6.25% 2033s were trading lower by 1.5 points at 60.6, yielding 15.3%.
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