Senegal’s Commercial Loans Trade at Sharp Discounts Amid Debt Strain
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Senegal’s short-term euro-denominated commercial loans trade at or below 80 cents on the euro, according to four finance industry sources. The loans mature as early as February, with sources noting limited investor participation and no confirmed transactions. Senegal’s finance ministry denied the reported pricing.
The pricing follows discovery of over $11 billion in unreported debt, pushing the debt-to-GDP ratio above 119% and prompting IMF suspension of its $1.8 billion program last year. Prime Minister Ousmane Sonko rejected IMF suggestions for restructuring, calling it “a disgrace.” Negotiations continue for new bailout support.
Tradeweb data show the 2028 euro bond at 70 cents on the euro, with 2031 and longer bonds between 54 and 61 cents. Two sources said Standard Chartered originated the loans; the bank declined comment.
