(Ecofin Agency) - This positive momentum does not hide the challenges Côte d'Ivoire faces. High public spending, especially on infrastructure and security, still strains the budget. The frequent issuance of short-term debt shows active management but also brings refinancing risks in the medium term, particularly if market conditions worsen.

Côte d'Ivoire successfully raised CFA148.5 billion (over $251 million) through a new bond issuance on the regional public debt market. This amount exceeded the CFA135 billion initially planned, with a coverage rate of 117.49%, reflecting strong investor demand for Ivorian government securities.

The fundraising involved short-term Treasury bills and medium- to long-term Treasury bonds, with maturities ranging from 91 days to 10 years (91 days, 364 days, 3 years, and 10 years).

This success comes amid increasing pressure on Côte d'Ivoire's public finances. The government still needs to pay CFA128 billion in debt service by the end of September 2024, at least CFA147 billion in October, and CFA120 billion in November, totaling nearly CFA400 billion. This is in addition to the CFA1,583 billion the country has already repaid since the beginning of the year.

Despite these upcoming payments, investor confidence remains strong, as shown by the yields on Ivorian bonds. The country is borrowing at lower rates than most of its WAEMU neighbors. For instance, Côte d'Ivoire offered a 6.49% yield on its 91-day Treasury bills and a 7.65% yield on its 3-year bonds.

In comparison, Senegal issued 364-day Treasury bills on September 20, 2024, with a slightly higher yield of 6.91%, compared to Côte d'Ivoire's 6.80% for the same maturity. Even Burkina Faso, which offered a 7.14% yield on 7-year bonds on September 11, 2024, fell behind Côte d'Ivoire, which posted a 6.61% yield for the same term during its September 24 auction.

On the other hand, Benin managed to attract investors with a 7.15% yield on 5-year bonds during its September 12, 2024, issuance, surpassing Abidjan's 7.42% for the same maturity.

So far in 2024, Côte d'Ivoire has carried out 23 issuances with 91-day maturities and 30 with 364-day maturities. The country has also been active in longer-term segments, regularly issuing 3-, 5-, 7-, and 10-year bonds.

Côte d'Ivoire's public treasury has already raised over CFA2,212 billion through the WAEMU Securities market, accounting for nearly 40% of the total amounts raised by Union countries. More issuances are still planned for the rest of the year.