Gabon is heading back to international debt markets with plans to raise $580 million through a new dollar-denominated bond, just two months after securing $920 million from a Eurobond issue.
The government has appointed BofA Securities as the sole lead manager, with meetings with fixed-income investors already getting underway. The proposed bond is expected to have an eight-year maturity.
The planned issuance comes as Gabon looks for additional funding while also negotiating with the International Monetary Fund (IMF) over a potential new programme.
The country’s previous $553 million IMF arrangement was suspended following the 2023 military coup. The IMF said last week that technical discussions on Gabon’s fiscal position, public debt and economic outlook would continue.
Why the new borrowing?
A government debt audit released earlier in September found that the country’s debt burden was around 20% lower than previously estimated, helping improve the outlook around its fiscal position.
But at the same time, Gabon’s proposed 2027 budget points to continued heavy financing needs. The government plans to raise about 1.144 trillion CFA francs ($1.96 billion), from international markets next year. Debt-service costs are also projected to rise significantly.
Investors are watching closely
The market reaction has been mixed, in that, Gabon’s existing dollar bonds have recently come under pressure, with its 2031 notes falling for a sixth consecutive session and its 2029 bonds declining for a seventh straight session, according to market data cited in the report.
The proposed $580 million issue would bring Gabon’s international borrowing for 2026 to about $1.5 billion, following the $920 million Eurobond issued in July. Gabon’s debt authorities confirmed that the July transaction marked the country’s return to international capital markets.