…Kenya, Benin, Cameroon, Congo tap Eurobond market since January
African countries are returning to international capital markets sooner than expected in 2026, moving to secure cheaper external financing as global borrowing costs ease and investor appetite for emerging-market debt strengthens.
Countries including Kenya, Benin, Cameroon, and the Republic of Congo have issued new dollar-denominated bonds marking a decisive reopening of the Eurobond window after two years of tight financial conditions.
Kenya’s latest move underscores the shift. On Wednesday, the East African economy initiated a buyback of portions of its outstanding Eurobonds—tendering up to $350 million of its eight percent notes due in 2032 and $150 million of its 7.25 percent bonds maturing in 2028—in a bid to smooth its debt maturity profile and ease refinancing pressure.
The offer, which includes accrued interest, is scheduled to close on February 25, according to regulatory filings.
Authorities plan to pair the liability-management exercise with a fresh external issuance, extending maturities while lowering interest costs. The strategy follows improved credit sentiment after Moody’s upgraded Kenya to B3 with a stable outlook in January, Fitch affirmed its B rating, and S&P raised the country’s score in 2025.
Market pricing already reflects renewed confidence. Yields on the country’s 2028 Eurobond have fallen to around six percent, while the 2032 note trades near 7.1 percent, according to Bloomberg data—levels that make refinancing materially cheaper than during the 2023–2024 tightening cycle.
Eurobond window reopens across Africa
Kenya is part of a broader continental trend as narrowing spreads between emerging-market bonds and US Treasuries encourage sovereign borrowers to return to global markets earlier in the year.
Benin reopened Africa’s primary market in January, raising $1 billion via a Eurobond and commercial loan, followed by another $850 million, including a sukuk.
Cameroon issued a $750 million five-year Eurobond the same month.
The Republic of Congo sold new 2035-maturity notes at a yield of about 11.6 percent, sharply lower than the 13.7 percent it paid on a $930 million issue in November.
Pipeline activity remains strong. Côte d’Ivoire is considering a dollar-bond sale estimated at roughly $1.5 billion this year against about $1 billion in repayments due, while Angola is reportedly preparing a transaction of up to $1.7 billion, according to market participants and investment-bank notes.
Refinancing replaces crisis management
The early-year issuance rush signals a shift in Africa’s sovereign debt narrative—from crisis-era borrowing driven by urgent liquidity needs to proactive refinancing aimed at reducing interest burdens and extending maturities.
Kenya illustrates this transition most clearly. Officials are weighing a new Eurobond in the $1.5 billion to $2 billion range and exploring a debt-for-food-security swap that could raise about $1 billion through a US Development Finance Corporation-guaranteed instrument.
Proceeds would be used to retire higher-coupon bonds maturing from 2031, lowering refinancing risk and improving the sovereign yield curve, according to Morgan Stanley.
For African borrowers more broadly, the current window may prove time-sensitive. While global rates have softened, uncertainty around inflation, geopolitics and US monetary policy could quickly tighten conditions again.
By moving early in 2026, African countries are seeking to secure cheaper capital before that window narrows—signalling a more strategic, forward-looking phase in the continent’s external debt management.
