Senegal starts transfer for 2048 bond coupon payment

Senegal has started the transfer process for a coupon payment on its 2048 U.S. dollar bond, set to be paid on September 13, an economy ministry official said Thursday.

The country’s international bonds rose following the announcement. The 2048 bond increased 2.5 cents to bid at 51.47 cents on the dollar, according to Tradeweb data.

The International Monetary Fund and Senegal reached a staff-level agreement earlier this week for a $2.2 billion three-year loan package.

"Under this agreement, you haven’t heard the authorities mention any debt service suspensions... We will do our utmost to fulfill our commitments," said Alioune Diouf, head of the capital markets department in the economy ministry.

Senegal’s debt burden reached 132% of gross domestic product by the end of 2024, IMF figures show. The previous administration had misreported billions of dollars in borrowing, which the current government uncovered.