Benin’s international bond prices fell on Monday following an attempted coup in the West African nation on Sunday, according to Tradeweb data.
The country’s 2052 euro-denominated bond slid as much as 1.8 cents to trade at 88.04 cents on the euro, while its dollar bonds dropped by about 1.5 cents, according to Reuters.
Longer-dated maturities recorded the sharpest early losses before trimming declines, with bonds maturing in 2038 and beyond ending just over one cent lower.
President Patrice Talon said the government and armed forces had foiled a coup attempt by a group of soldiers.
“This is likely to dent the country’s reputation for relative stability,” BMI, part of the Fitch Group, said in a note to clients.
BMI added that parliamentary and presidential elections scheduled for January and April next year are expected to proceed, with economy and finance minister Romuald Wadagni viewed as the frontrunner in the presidential race.
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The episode adds to recent threats to democratic rule across the region after military takeovers in Niger, Burkina Faso, Mali and Guinea in recent years, and another attempted coup in Guinea-Bissau last month.
Some analysts, however, viewed the swift outcome positively. “The country has not seen a successful coup since 1972, marking a remarkable 53-year stability record in coup-prone West Africa.
This track record now stands reaffirmed,” said Jamie Fallon of Tellimer, citing rapid regional backing as evidence of “strong international commitment to defending constitutional order.”
Nigeria deployed air force fighter jets in support of Talon’s government, while the regional bloc ECOWAS said it ordered the immediate deployment of part of its standby force to Benin, including troops from Nigeria, Sierra Leone, Ivory Coast and Ghana.
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Image Credit: NKANU TV
