DR Congo Debuts Sovereign Eurobond Issue for $1.25B

Buoyed by demand for its minerals, the Democratic Republic of Congo (DRC) managed an #Eurobond issue worth EUR 1.25 billion. This marks the debut of DRC on the global capital market. This deal provides a new option for African countries to monetize their mineral-rich soil, in addition to so-called ‘concessional loans.’

Backed by its recent #CriticalMinerals Partnership agreement with the USA, investors have shown greater interest and appetite for a country that was, until now, considered too high-risk due to the unending conflict along its Eastern border. Finally, the Eurobond issue was oversubscribed after an investor roadshow in London, Paris and New York.

Citigroup, Standard Chartered and Kinshasa-based Rawbank are underwriting the transaction. The capital is split into two tranches: $600M running to 2032 with a yield of 8.75% and another $650M running to 2037 at 9.50%.

Investors seemed happy to note the low #GDP2Debt ratio of just 20% and the robust economic growth rates this year and beyond. The substantial investments pouring into DRC, backed by the Trump Administration, have sent a positive signal to attract more capital. Global agencies give DRC the thumbs up with ratings from B- to B+.

DRC Finance Minister Doudou Likunde indicated that this is just the beginning and not the end since the government is planning additional tranches up to a total of USD 3 billion. The funds will be mainly used to modernize the N’dijili International Airport in the capital Kinshasa, upgrade the railway along the #LobitoCorridor, and build power plants to support the development of the mining sector. Other priority projects targeted at improving the livelihoods of the citizens are identified in the Government Action Plan (#NDP) 2024-2028.