Biggest African Public Bond Sales Over the Last Decade
African Nations Raise Record Amounts in Bond Issuances
In 2024, African nations set a new record by issuing approximately $21.6 billion in new bonds, with sovereign issuances accounting for $13.8 billion. This surge in bond issuances reflects the growing confidence of international investors in the African economy.
One of the significant bond issuances was Nigeria's return to the international capital markets after a hiatus, with a $2.2 billion Eurobond. Other notable issuances include Ghana's record-breaking Eurobond issuance of over $2 billion, and Cote d'Ivoire's $2.6 billion dual-tranche Eurobond, which attracted over $8 billion in orders.
The Africa Finance Corporation's bond issues, primarily used for financing infrastructure projects across Africa, have also attracted strong global interest. The Corporation's $750 million hybrid capital bond in 2024 was oversubscribed at $6 billion, and its $500 million 10-year Eurobond in 2019 was the longest-tenor bond at the time.
Benin, Morocco, and Egypt have also made significant strides in the bond market. Benin issued a $750 million Eurobond, reflecting its growing credibility in international markets, while Morocco issued a $2.5 billion dual-tranche Eurobond in 2023, demonstrating its continued access to international markets. Egypt, on the other hand, issued a Panda bond of RMB 3.5 billion (approx. $479 million) in 2023, becoming the first African country to tap into China's domestic debt markets.
The African Development Bank (AfDB) predicts that 24 African countries will exceed 5% GDP growth in 2025, making Africa the world's second-fastest-growing region after Asia. This growth is expected to continue driving the demand for infrastructure development, further boosting the bond market.
The AfDB is also taking steps to boost climate financing without adding financial strain on governments. In 2024, it issued a $750 million hybrid capital bond, which is designed to raise capital for climate-related projects. Egypt's Panda bond is another example of this trend, with the bond being used for financing green projects under its sovereign sustainable financing framework.
The International Monetary Fund projects Sub-Saharan Africa's public debt-to-GDP ratio to decline from 60.1% in 2024 to 56.8% in 2025, indicating a healthier financial outlook for the region. This, coupled with the strong economic growth, makes African bonds an attractive investment option for global investors.
In conclusion, African nations are making significant strides in the bond market, with record-breaking issuances and increasing global interest. The continent's growing economy, coupled with innovative financing solutions, is set to continue driving the growth of the bond market in Africa.
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