Public debt reprofiling : Orishas-finance

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Public debt reprofiling

17/07/2019

Source : Republic of Togo

Categories: General Information

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In a recent interview published by the Financial Times, President Faure Gnassingbé expressed his country's intention to look internationally by using several possibilities.

"It's not a decision you take lightly," he said.

Togo finally opted for private placements with international investors.

In this perspective, the Minister of Economy and Finance, Sani Yaya has been in London since Tuesday. On the first day of his visit, he presented the fundraising project to bankers and insurers. The opportunity to make a presentation on the overall economic situation and to detail the strategy contained in the national development plan (PND).

Togo is advised by the investment bank Lazard in the process which should lead to the raising of 397 million euros, in the form of private placements with private investors. The country received discharge from the International Monetary Fund (IMF) and obtained a guarantee from the World Bank and Africa Trade Insurance. This fundraising is part of the reprofiling of the public debt. Togo intends to seize the opportunities offered by the international market to benefit from more advantageous conditions (longer maturity and lower interest rate) to prepay part of the domestic debt at higher interest rates on shorter maturities.

This mechanism should enable the Treasury to reduce the service of the public debt and free up budgetary and cash space to finance, in particular, social needs while avoiding the risk of refinancing.

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