Ivory Coast’s Eurobonds fell as a terrorist attack on three hotels Sunday that left at least 22 people dead added to the risks of investing in the world’s biggest cocoa producer.
Yields on $750 million of securities due July 2024 jumped as much as 12 basis points before trading 6 points higher at 7.16 percent by 12:10 p.m. in London. That compares with a 1 point increase to 8.19 percent for Eurobonds of Nigeria, which shares Ivory Coast’s B+ rating at Standard & Poor’s.
Ivory Coast’s economy has rebounded under President Alassane Ouattara after almost a decade of conflict in the 2000s and a disputed election in 2010 that left thousands dead and forced the country to default on its foreign debt. Last year, the economy’s expansion was estimated at 8.6 percent, more than twice the average in sub-Saharan Africa, according to the International Monetary Fund. The government is forecasting growth of at least 9 percent this year.
A $1 billion sale of 12-year sinkable bonds in February 2015 attracted $4 billion of offers, according to the finance ministry. The nation has $4 billion of foreign debt outstanding, according to data compiled by Bloomberg.