Senegal Bonds Surge as Leader Again Rules Out Debt Restructuring
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MarketsGiftExpandOusmane SonkoPhotographer: Seyllou/AFP/Getty ImagesGiftGift this articleAdd us on GoogleContact us:Provide news feedback or report an errorConfidential tip?Send a tip to our reportersSite feedback:Take our SurveyNew WindowGiftBy Ray Ndlovu and Katarina HoijeJanuary 9, 2026 at 8:29 PM GMT+5:30BookmarkSaveTranslateListen1:54Senegal’s dollar bonds surged after Prime Minister Ousmane Sonko again rejected a debt restructuring, saying the West African nation would rely on domestic markets to finance its budget and debt-servicing costs.The nation’s dollar bonds due 2031 rose 2.4 cents on the dollar to trade at 66.36 cents as of 2:33 p.m in London, the highest level since November. Notes due 2033 also climbed 1.5 cents.Senegal’s debt is still viable and has been serviced over the past 18 months without any external program, Sonko told journalists on Thursday in the capital, Dakar. The government raised 560 billion CFA francs ($1 billion) in an oversubscribed regional bond sale last month as the government scrambles for funds given its limited access to international capital markets. A repayment of €380 million ($442 million) including interest is due March 13 on sinkable bonds maturing in 2028.“We see a way out of this situation without the need for a restructuring,” said Sonko, adding that President Bassirou Diomaye Faye supported that stance. “We remain firmly on this position. Nothing has changed.”Read More: Senegal Aims to Ramp Up Tax Revenue to Win New IMF Program Still, greater reliance on domestic markets has only provided short-term relief but does little to resolve debt sustainability concerns, according to Leeuwner Esterhuysen, a senior economist at Oxford Economics. “Senegal’s recent issuances risk crowding out private credit and raising refinancing pressures over time, especially if investor sentiment turns,” said Esterhuysen. The Senegalese government, though strongly opposed to debt restructuring, will need “some form of adjustment” to unlock a new International Monetary Fund program, he added.Sign up here for the twice-weekly Next Africa newsletter, and subscribe to the Next Africa podcast on Apple, Spotify or anywhere you listen.— With assistance from Kerim KarakayaLinkCopy LinkGet Alerts for:Plus FollowingPlus Ray NdlovuPlus Ray NdlovuPlus FollowingPlus Katarina HoijePlus Katarina HoijeGiftBookmarkSaveContact us:Provide news feedback or report an errorSite feedback:Take our SurveyNew WindowConfidential tip?Send a tip to our reportersBefore it's here, it's on the Bloomberg TerminalBloomberg Terminal LEARN MOREBefore it's here, it's on the Bloomberg TerminalBloomberg Terminal LEARN MORE