Senegal Hiring Banks for $500 Million Eurobond Sale by July

Senegal is in the process of hiring banks to arrange the sale of as much as $500 million in Eurobonds by July, Finance Minister Amadou Ba said.

“We expect to get a good reception from the markets,” Ba said in an interview in Kigali, the capital of Rwanda, where he is attending the African Development Bank annual meeting. “We are in the process of recruiting banks, and those will be announced soon.”

Senegal joins countries including Kenya, Ghana, Ivory Coast and Rwanda that have discussed issuing dollar debt this year following a record amount of sales from Africa in 2013. President Macky Sall, who assumed office in 2012, is firing government workers and eliminating state agencies to save money and boost spending on infrastructure.

Yields on Senegal’s $500 million of 10-year notes due May 2021 fell 62 basis points since Dec. 31, or 0.62 percentage point, to 6.23 percent by 10:17 a.m. in Dakar, the capital. The bond has returned 1.1 percent this month, compared with 2 percent for emerging-market peers, according to Bloomberg indexes.

Senegal’s economy, which earns much of its foreign currency from exports of fish and peanuts, is forecast to expand 4.9 percent this year from 3.5 percent in 2013, the International Monetary Fund said last month. The second-largest economy in the eight-nation West African Economic and Monetary Union targets growth of at least 7 percent annually in the next 10 years, Ange Constantin Mancabou, an adviser to Ba, said in an interview in Kigali today.

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