The Democratic Republic of Congo has raised $1.25bn in its debut eurobond issue, representing the first time the country has raised money in a currency not its own on global capital markets. <\/p>\n
The transaction, the first eurobond debut by an African country since 2019, was structured in two tranches, a 5-year tranche (matures 2032, yield 8.75%) and a 10-year tranche (matures 2037, yield 9.5%). The instrument is expected to be listed on the London Stock Exchange. <\/p>\n
According to a statement from DRC’s finance ministry, orders exceeded $5.2bn, representing an oversubscription of more than four times, with global participation from over 110 investors.<\/p>\n
‘An important step’ <\/p>\n
DRC minister of finance Doudou Likunde welcomed the issuance. <\/p>\n
“The international market entry is an important step in our national financing strategy. While concessional financing remains central, we are diversifying our funding sources. The proceeds from the Eurobond issuance will be allocated to priority investments in infrastructure, energy and social development in line with the national development strategy.”<\/p>\n
While eurobonds offer African countries access to global capital markets and new lenders, the instruments have also been criticised for high interest rates compared to concessional loans from development banks. The ministry said the eurobond issuance was “the result of careful preparation, robust structuring, and sustained engagement with key international partners, including the International Monetary Fund.”<\/p>\n
“Our ambition is to become a regular sovereign issuer and this transaction lays the foundation for the country’s continued access to international financial markets,” said Likunde. <\/p>\n
“At the same time, we remain committed to maintaining debt sustainability in line with the IMF programme.”<\/p>\n
Progress despite conflict<\/p>\n
In January 2025, the IMF approved a 38-month, $2.76bn financing arrangement for the DRC, consisting of a $1.73bn extended credit facility (ECF) and a $1.04bn resilience and sustainability facility (RSF). A second review of the ECF and first review of the RSF was completed in December, allowing for a disbursement of $442m. <\/p>\n
The IMF said in December that the authorities “have kept momentum on structural reforms”, meeting all but one performance criteria. <\/p>\n
The Fund said that the DRC’s economy “has remained resilient despite the persistence of the armed conflict in the eastern part of the country, which continues to exert significant pressure on public finances.” <\/p>\n
An updated US-brokered peace deal in December was designed to end hostilities between the DRC and the Rwanda-backed M23 militia in the eastern DRC, but ceasefire violations have been reported. <\/p>\n
Growth outlook<\/p>\n
Speaking further on the eurobond issuance, Likunde said: <\/p>\n
“This high participation of investors and oversubscription reflects growing investor confidence in the Democratic Republic of the Congo’s outlook and the progress we have made in stabilising our economy, strengthening governance, and implementing disciplined fiscal policies.”<\/p>\n
The IMF currently forecasts growth of 5.3% this year. <\/p>\n
In January, ratings agency S&P Global revised its outlook on DRC to positive from stable and affirmed ‘B-\/B’ foreign currency and local currency sovereign credit ratings.<\/p>\n
“The positive outlook reflects our expectation that DRC will make further progress on improving tax administration and fiscal outcomes, benefiting from positive terms of trade, volume export growth, and external policy anchors, including DRC’s Extended Credit Facility Arrangement with the IMF,” the agency said.<\/p>\n
Sending a signal<\/p>\n
The eurobond issue was structured by joint global coordinators Rawbank and Citigroup, with Standard Chartered Bank also joining as joint bookrunner.<\/p>\n
“This is a big moment, and above all, a decisive one for the markets,” said Mustafa Rawji, chief executive officer of DRC-based Rawbank.<\/p>\n
“The DRC is finalising its first international sovereign transaction and demonstrating that it can now access global investors under structured conditions. What matters most is the signal this sends: fundamentals are improving, economic visibility is strengthening, and investors are responding.”<\/p>\n","protected":false},"excerpt":{"rendered":"
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