Senegal raised 154 billion CFA francs, equivalent to about $254 million, at a regional debt auction on Friday, with investors demanding higher yields across all maturities, according to data released by regional debt agency UMOA-Titres.
The sale reflects rising borrowing costs for the West African country as it continues to tap domestic and regional markets for funding.
The government raised 71.46 billion CFA francs through a 12-month BAT treasury bill, compared with total bids of 87.14 billion CFA francs.
The weighted average yield on the short-term paper came in at 6.96%, while the marginal rate stood at 6.92%, pointing to higher short-term financing costs, according to Reuters.
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Demand for longer-dated instruments was more subdued. A 36-month OAT treasury bond attracted bids worth 65.89 billion CFA francs, with almost the entire amount accepted at a weighted average yield of 7.28%.
A 60-month OAT treasury bond received bids totaling 16.65 billion CFA francs, all of which were retained by the treasury.
This bond cleared at a weighted average yield of 7.69%, the highest among the three instruments offered.
Senegal has increasingly turned to domestic and regional debt markets to meet its financing needs after the International Monetary Fund suspended its $1.8 billion, three-year support programme.
The suspension followed the discovery by the country’s current leadership of billions of dollars in borrowing that had not been reported by the previous administration.
The IMF has said Senegal’s debt burden reached 132% of gross domestic product by the end of 2024.
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Image Credit: Reuters
