Senegal has commenced the transfer process for the coupon on its 2048 U.S. dollar bond, with the payment scheduled for September 13, an official from the economy ministry stated on Thursday.
The market reaction to that announcement was immediate. International bond prices for the issue moved higher, with Tradeweb showing the 2048 bond rising by 2.5 cents to a bid of 51.47 cents on the dollar.
The transfer comes after a staff-level agreement with the International Monetary Fund earlier this week on a three-year financial package worth $2.2 billion. The IMF accord and the commencement of the coupon transfer were cited in government remarks as linked elements of Senegal's ongoing engagement with creditors and international institutions.
Alioune Diouf, who leads the capital markets department within the economy ministry, emphasized that Senegal has not indicated any intention to halt debt payments under the terms of the IMF staff-level deal. "Under this agreement, you haven’t heard the authorities mention any debt service suspensions... We will do our utmost to fulfill our commitments," he said.
Officials also pointed to the country’s elevated debt metrics as context for recent fiscal and market developments. IMF figures show Senegal’s debt burden reached 132% of gross domestic product by the end of 2024. The government has said that the previous administration misstated billions of dollars in borrowing, a discrepancy that the current administration identified and has been addressing.
The payment process now under way is a discrete operational step tied to a specific coupon date and amount, with officials publicly signaling intent to honour scheduled obligations. Market pricing and the IMF staff-level agreement framed investor and official commentary in the days leading up to the September 13 payment.
Article note: The information above is drawn from statements by economy ministry officials, Tradeweb pricing for the 2048 bond, and an IMF staff-level agreement referenced by the government.