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UPDATE 1-Senegal raises $500 mln in debt to fund infrastructure -Moroccan bank
February 14, 2014 / 4:52 PM / 4 years ago

UPDATE 1-Senegal raises $500 mln in debt to fund infrastructure -Moroccan bank

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RABAT, Feb 14 (Reuters) - Senegal has raised 250 billion CFA francs ($520.8 million) in debt to finance infrastructure projects, said Morocco’s Banque Centrale Populaire, which managed the deal.

The Senegalese government will finance ports, airports and roads with the funds, the statement said.

Senegal raised 150 billion CFA francs from African institutional investors and another 100 billion CFA from international markets, BCP said. It used the bank’s Banque Atlantique Senegal, Atlantique Finance and Upline subsidiaries.

“The deal shows the Banque Centrale Populaire and its African subsidiaries’ commitment to support the state of Senegal in their economic and development plans,” the statement said.

The 150 billion-CFA part of the funding carries a 7-year maturity. No details were provided on the second part.

“The second part has been agreed with international lenders, but under our agreement we cannot reveal their identity,” a source from the Banque Populaire told Reuters.

The International Monetary Fund said last year Senegal is likely to issue a $500 million 10-year Eurobond at an interest rate of about 6 percent. The deal announced by BCP is in addition to the bond sale, a Treasury official said.

“It does not replace our planned foreign bond issue,” said Souleymane Sene, a division chief in the Senegalese Treasury. “In our schedule, we have always $500 million to issue in bonds. If everything is fine, we should launch it in the first half of 2014.”

BCP took control in 2012 of Banque Atlantique, which operates in many countries in West Africa, including Senegal and Ivory Coast.

$1 = 479.9920 CFA francs Reporting By Aziz El Yaakoubi; Additional reporting by Diadie Ba in Dakar; Editing by Larry King

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