Benin proceeded, on Wednesday, January 13, 2021, to the fixing of the price of a new bond issue in euros, on the international markets. This issue, coupled with a liability management operation, will allow the early repayment of 65% of the nominal amount of Benin's Eurobond 2026 (€324 million), as well as the financing of the 2021 budget and the flagship projects of the Government's Action Programme. This international bond operation is the first, on the African continent, of the year with the issuance of one billion euros, in two tranches of final maturities, 11 years and 31 years. According to the statement of the Ministry of Economy and Finance announcing the operation, Benin joins the limited number of emerging issuers to have a Eurobond in euros with a maturity of more than 30 years.

The statement also recalls that "more than 125 investors have placed orders, many of whom had not participated in Benin's inaugural issue in March 2019." Proof of the interest shown by international investors in Benin's credit. Because the country "has managed to diversify its sources of financing and extend the average maturity of its market debt, while reducing the average cost incurred". A sign of confidence and credibility for the country, thanks to the many reforms and the effective management of the Covid 19 crisis.

Press release from the Ministry of Economy and Finance

From 6 to 11 January 2021, the official delegation led by the Minister of Economy and Finance of the Republic of Benin, Mr. Romuald Wadagni, held bilateral talks with several major international institutional investors. This roadshow was an opportunity for the Minister to remind investors of the concrete results of the Government's Action Program in the context of the Covid-19 crisis.

On 12 January, the Ministry of Economy and Finance successfully placed 1.0 billion euros (656 billion CFA francs) with international investors. Taking advantage of particularly favourable market conditions, Benin mobilized €700 million on an 11-year final maturity, at a coupon of 4.875%, and €300 million on a 31-year final maturity, with a coupon of 6.875%. With this 2052 maturity tranche, the longest ever reached by the country, Benin joins the limited number of emerging issuers to have a Eurobond in euros with a maturity of more than 30 years.

This issue is coupled with a technical liability management operation, part of the Proactive Public Debt Management Strategy implemented by the Government. The success of the partial purchase of eurobond 2026 allows Benin to limit refinancing risks, extend the maturity of its debt and reduce its average cost.

Benin is the first issuer in Africa to solicit the international market this year, demonstrating speed of execution. The order book of the operation reached a peak of nearly 3 billion euros in the day (i.e. a subscription of 300%), including 1.9 billion for the 11-year tranche and 1.2 billion at 31 years. More than 125 investors placed orders, many of whom had not participated in Benin's inaugural issue in March 2019. The Republic of Benin has therefore succeeded in diversifying its sources of financing and extending the average maturity of its market debt while reducing the average cost incurred.

The success of this issue reflects the interest shown by international investors in Benin's credit.

The financial closing of the new issue is expected to take place on 19 January 2021 and that of the buyout transaction is expected to take place on 20 January 2021.