Ivory Coast Is Said to Revive $1.2 Billion Global Bond Sale
(Bloomberg) -- Ivory Coast has revived a plan to sell as much as 1 billion euros ($1.2 billion) of debt overseas, according to people with knowledge of the matter.
The debt sale, delayed from July because of unfavorable market conditions, may be offered as early as next month, the people said, asking not to be identified because the proposal isn’t public yet. The government had considered a private placement with banks, but has now opted for a global bond, they said.
The world’s biggest cocoa producer is also considering requesting a new $1 billion loan from the International Monetary Fund after its previous program ended in December, the people said. Formal negotiations may start next month in a bid to get a first disbursement in February.
Government spokesman Amadou Coulibaly didn’t respond to several calls and text messages seeking comment.
“It is widely expected that a new Eurobond is coming when the market is ready for that after the postponement in July,” said Lutz Roehmeyer, the chief investment officer at Capitulum Asset Management GmbH in Berlin, adding September may be the best option.
The bond would be Ivory Coast’s third sale in less than a year. The timing will allow the West African nation to take advantage of plunging global yields as the largest central banks start to reconsider the easing bias that has helped keep borrowing costs low.
The money will be used to meet “additional spending needs,” the government said in a statement when they initially announced the sale in July, before the postponement.
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