https://en.sputniknews.africa/20250114/benin-faces-narrowing-window-for-750-million-bond-issuance-amid-rising-yields-1070185820.html
Benin Faces Narrowing Window for $750 Mln Bond Issuance Amid Rising Yields
Benin Faces Narrowing Window for $750 Mln Bond Issuance Amid Rising Yields
Sputnik Africa
Higher yields (or interest rates) increase borrowing costs for governments, as investors demand greater returns to offset perceived risks. Additionally, the... 14.01.2025, Sputnik Africa
2025-01-14T17:48+0100
2025-01-14T17:48+0100
2025-01-14T17:57+0100
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Benin's plans to issue $750 million in bonds face increasing pressure as rising yields threaten the feasibility of the sale.The government began marketing the debt last week, but officials have reportedly indicated they are monitoring market conditions closely before proceeding.The average yield on African sovereign dollar bonds has risen by 55 basis points since December 9, reaching 9.15%, according to the Standard Bank's Africa Sovereign Yield Index. These rising costs mirror trends in US Treasury yields, driven by robust economic data and expectations of potentially inflationary policies under US President-elect Donald Trump.In similar market conditions in 2022, several African nations postponed their Eurobond issuances, waiting for yields to stabilize. Cote d'Ivoire was one of the first to re-enter the market in early 2024, signaling improved conditions.If Benin proceeds with the bond sale, it will join other African nations, including Nigeria, Angola, Cameroon, Cote d'Ivoire, and Namibia, that are expected to tap the market in 2025. However, analysts suggest that cautious timing will be key to ensuring affordable borrowing rates.
https://en.sputniknews.africa/20250112/benin-targets-750-million-in-dollar-bonds-leading-africas-2025-debt-market-1070144460.html
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benin, west africa, bonds, finance, market, economy, debt, loan, united states (us), donald trump, africa, us treasury, us dollar
Benin Faces Narrowing Window for $750 Mln Bond Issuance Amid Rising Yields
17:48 14.01.2025 (Updated: 17:57 14.01.2025) Christina Glazkova
Writer / Editor
Higher yields (or interest rates) increase borrowing costs for governments, as investors demand greater returns to offset perceived risks. Additionally, the strengthening US dollar raises the cost of servicing existing dollar-denominated debt for many African nations.
Benin's plans to issue $750 million in bonds face increasing pressure as rising yields threaten the feasibility of the sale.
The government began marketing the
debt last week, but officials have reportedly indicated they are monitoring market conditions closely before proceeding.
The average yield on African sovereign dollar bonds has risen by 55 basis points since December 9, reaching
9.15%, according to the Standard Bank's Africa Sovereign Yield Index. These rising costs mirror trends in US Treasury yields, driven by robust economic data and expectations of potentially inflationary policies under US President-elect Donald
Trump.In similar market conditions in 2022, several African nations postponed their
Eurobond issuances, waiting for yields to stabilize. Cote d'Ivoire was one of the first to re-enter the market in early 2024, signaling improved conditions.
If Benin proceeds with the bond sale, it will join other African nations, including Nigeria, Angola, Cameroon, Cote d'Ivoire, and Namibia, that are expected to tap the market in 2025. However, analysts suggest that cautious timing will be key to ensuring affordable borrowing rates.
