Benin Advances Preparations for Africa’s First Eurobond of 2026
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Benin has kicked off investor roadshows for what could become Africa’s first Eurobond issuance of 2026, with the West African nation seeking up to $500 million in a five-year dollar note. The finance ministry announced the capped tender process on January 7, following a successful domestic bond auction and fiscal consolidation under President Patrice Talon’s administration. Benin aims to refinance maturing debt and fund infrastructure while signaling improved market access.
The proposed benchmark carries a $500 million target but could expand to $750 million if demand exceeds expectations, according to initial mandates. Lead managers include Standard Chartered, Absa Capital, and Mauritius-based Mauritius Commercial Bank. Benin’s debut comes after Côte d’Ivoire and Senegal tapped markets in late 2025, with the country’s Eurobond hopes boosted by GDP growth above 6% and debt-to-GDP falling to 55% from pandemic highs.
Benin’s fiscal position strengthened through revenue mobilization and spending discipline, enabling debt service coverage above 2x. The 2025 budget delivered a primary surplus for the first time since 2019, while reserves cover 5 months of imports. Finance Minister Romuald Wadagni emphasized the bond’s role in diversifying funding beyond concessional loans as Benin graduates from IDA eligibility.
Market appetite for frontier sovereigns has warmed since Nigeria’s $3.3 billion raise in 2025, though Benin faces scrutiny over political risks ahead of 2026 elections and cotton price volatility representing 40% of exports. Spreads for similar five-year notes trade around 450 basis points over US Treasuries, reflecting Benin’s B3/B rating from Moody’s and Fitch.
For investors, Benin offers selective entry into West Africa’s reform cohort, balancing fiscal gains against election and commodity risks. Success would position the nation alongside regional peers accessing commercial funding, potentially paving the way for Côte d’Ivoire’s follow-on issuance.
