On Wednesday, January 13, 2021, Benin set the price for a new bond issue in euros on international markets. This issue, coupled with a liability management operation, will allow the early repayment of 65% of the nominal amount of Benin's Eurobond 2026 (324 million euros), as well as the financing of the 2021 budget and the flagship projects of the Government Action Programme. This international bond operation is the first, on the African continent, of the year with the issuance of one billion euros, in two final maturity brackets, 11 years and 31 years. According to the press release from the Ministry of Economy and Finance announcing the operation, Benin joins the limited number of emerging issuers to have a Eurobond in euros with a maturity of more than 30 years

The statement also recalls that “more than 125 investors have placed orders, many of whom did not participate in Benin's inaugural issue in March 2019.” Proof of the interest shown by international investors in Benin's credit. Because, the country “has managed to diversify its sources of financing and extend the average maturity of its market debt, while reducing the average cost incurred.” A sign of trust and credibility for the country, thanks to the numerous reforms and the effective management of the Covid-19 crisis.

Press release from the Ministry of Economy and Finance

From January 6 to 11, 2021, the official delegation led by the Minister of Economy and Finance of the Republic of Benin, Mr. Romuald Wadagni, held bilateral talks with several major international institutional investors. This roadshow was an opportunity for the Minister to remind investors of the concrete results of the Government Action Programme in the context of the Covid-19 crisis

On January 12, the Ministry of Economy and Finance successfully placed 1.0 billion euros (656 billion CFA francs) with international investors. Taking advantage of particularly favourable market conditions, Benin mobilized 700 million euros over a final maturity of 11 years, at a coupon of 4.875%, and 300 million euros over a final maturity of 31 years, with a coupon of 6.875%. With this 2052 maturity bracket, the longest ever reached by the country, Benin joins the limited number of emerging issuers to have a Eurobond in euros with a maturity of more than 30 years

This issue is coupled with a technical liability management operation, as part of the Government's proactive public debt management strategy. The success of the partial purchase of Eurobond 2026 allows Benin to limit refinancing risks, extend the maturity of its debt and reduce its average cost

Benin is the first issuer in Africa to seek the international market this year, showing rapid execution. The order book for the operation reached a peak of almost 3 billion euros during the day (i.e. a 300% subscription), including 1.9 billion for the 11-year period and 1.2 billion for 31 years. More than 125 investors have placed orders, many of whom did not participate in Benin's inaugural issue in March 2019. The Republic of Benin has therefore managed to diversify its sources of financing and extend the average maturity of its market debt while reducing the average cost incurred

The success of this issue reflects the interest shown by international investors in Benin's credit.

The financial closing of the new issue should take place on January 19, 2021 and that of the takeover transaction should take place on January 20, 2021.