Senegal’s euro loans trade at steep discounts as debt strain deepens
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Senegal’s short-term commercial loans in euros are trading at or below 80 cents on the euro, according to four finance industry sources, reflecting growing concerns over the country’s debt profile and market access. The loans, which mature as early as February, have seen limited investor participation and no confirmed transactions, the sources said. Senegal’s finance ministry denied the reported pricing levels.
The decline comes after the discovery of more than $11 billion in previously unreported debt, which drove the debt-to-GDP ratio above 119% and led the International Monetary Fund to suspend its $1.8 billion program last year. Prime Minister Ousmane Sonko publicly rejected IMF recommendations for a debt restructuring, describing them as “a disgrace.” Talks remain ongoing over potential new bailout financing.
Data from Tradeweb show Senegal’s 2028 eurobond trading around 70 cents on the euro, while the 2031 and longer-dated bonds are priced between 54 and 61 cents. Two sources said Standard Chartered originated the short-term commercial loans, though the bank declined to comment.
The sharp discounting in both loans and bonds underscores investor caution toward Senegal’s credit outlook as the government navigates high debt ratios, limited liquidity, and stalled engagement with international creditors.
