Sonatel completes XOF100bn bond issue

Senegal’s incumbent operator Sonatel has announced the successful early completion of its XOF100 billion (USD173 million) bond issue. The company revealed that the seven-year loan offering a gross interest rate of 6.50% per year, the largest bond issue to date by a private company in the region, was oversubscribed by more than 120%, with 39% of the bonds placed with investors in Senegal and 38% within the wider West African Economic and Monetary Union (WAEMU). The net proceeds from the issue will be used to finance Sonatel Group’s investment plan in Senegal for the 2020 financial year, which includes network modernisation and expansion and the launch of new energy, banking and multimedia content businesses.