(Ecofin Agency) - Cameroon has raised $550 million in Eurobonds, leveraging a period of lower interest rates and increased demand for African debt. This move follows similar issuances by Côte d'Ivoire, Kenya, Benin, and Senegal.

On Tuesday, July 23, 2024, Cameroon issued the seven-year Eurobonds at an interest rate of 10.75%. The issuance was conducted through a private placement, with Citigroup Global Markets Ltd serving as the sole placement agent and arranger alongside Cygnum Capital Middle East.

Cameroon, with long-term foreign currency debt rated "B" by Fitch Ratings and "B-" by S&P, will use the funds to finance increased public spending this year, according to the presidency. In June, the government announced a 7% increase in public spending to CFA7,200 billion ($11.9 billion) to fund infrastructure reconstruction projects in the country’s two Anglophone regions, which have been affected by a violent conflict between separatist groups and security forces.

With this Eurobond issuance, Cameroon becomes the fifth African country to secure new funding from international debt markets this year, following Côte d'Ivoire, Kenya, Benin, and Senegal.