THE Democratic Republic of Congo has raised $1.25bn in its first international bond sale, capitalising on growing global demand for its critical minerals and improving ties with the US, said Reuters in a report this week.
The country sold $600m of notes maturing in 2032 at a yield of 8.75% and a further $650m of 2037 paper at 9.50%, the newswire said citing a bank involved in the transaction. Final order books reached $2bn and $2.8bn respectively, excluding joint lead managers, allowing the government to tighten pricing from initial guidance of around 9.125% and 10%.
Finance Minister Doudou Fwamba Likunde Libotayi said the sale reflected recognition of the country’s progress on macroeconomic stability, public finance management and structural reform. “Our ambition is to become a regular sovereign issuer,” he told Reuters.
The bonds form part of a broader $1.5bn Eurobond programme announced earlier this year, with proceeds earmarked for infrastructure, energy and social projects. Both instruments are senior unsecured and amortising, said Reuters.
The transaction was aided by a positive credit outlook assigned by S&P Global Ratings in January, which cited robust growth prospects and improvements in foreign reserves and tax collection.
Conditions in international capital markets had also steadied following a provisional two-week ceasefire between Washington and Tehran, after the Iran war drove up energy prices and stoked inflation fears that had stalled emerging-market issuance.
Congo, a major producer of cobalt and copper, acknowledged in its bond documentation persistent risks including reliance on mining exports, conflict in its eastern regions, volatile commodity prices and economic concentration tied to China. Concessional financing still accounts for 97% of its external debt.