Bloomberg News

Ivory Coast Offers 100 Billion CFA Francs in 5-Year Bonds

August 29, 2011

(Adds details on Eurobonds in fourth paragraph.)

Aug. 29 (Bloomberg) -- Ivory Coast, the world’s biggest cocoa producer, began offering today 100 billion CFA francs ($220 million) in five-year bonds with a yield of 6.5 percent, according to the country’s Treasury.

The debt will be offered until Sept. 12, according to the statement from the Abidjan-based Treasury that was published in newspapers including le Patriote. It didn’t say what the funds raised in the sale will be used for.

The West African nation is rebuilding its economy after almost five months of a violent political crisis that followed a disputed November presidential election.

Damage to the economy caused by the impasse forced Ivory Coast to ask for a reassessment of $2.3 billion of Eurobonds, Finance Minister Charles Koffi Diby said July 12. The government missed coupon payments on the bonds, due 2032, in January and June.

The country approved a 3.05 trillion CFA-franc budget for this year on June 23 on the assumption that the economy will shrink 6.3 percent. On Aug. 5, Diby said Ivory Coast would make an immediate payment of 144 billion CFA francs to reduce arrears on its internal debt.

--Editors: Emily Bowers, Alastair Reed.

To contact the reporter on this story: Baudelaire Mieu and Olivier Monnier in Abidjan via Accra at ebowers1@bloomberg.net.

To contact the editor responsible for this story: Emily Bowers at ebowers1@bloomberg.net.


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