PIDG, EAIF supports Senegal’s local currency bond issue

Private Infrastructure Development Group and the Emerging Africa Infrastructure Fund have invested $15m in a local currency capital market bond issued by Senegal’s Port Autonome de Dakar, the owner of the Port of Dakar.

The bond raised over $107m. The issue marked the start of the process of relocating the capital city’s port and its operations to a new greenfield site.

In June this year, as COVID-19 began to impact the global economy, EAIF backed a local currency bond issue by Senegal’s largest telecommunications company, Sonatel.

The issue was successfully placed and attracted regional and international investors and demonstrated investors’ appetite for participating in African infrastructure projects.

PAD approached EAIF following the success of the Sonatel issue.

The proceeds of the PAD bond will help fund phases one, two and three of the move of the port of Dakar from the centre of the city to a deep water port location 35km by sea and 70km by road from the existing site.

The port will be part of the new special economic zone that includes Dakar’s international airport, which opened in 2017. New and upgraded road and rail links will connect the port and airport to Dakar and into the regional transport network.

The seven year bonds will have a coupon rate of 6.60 per cent. Financial close (the transfer of funds from EAIF to PAD) took place on 13 October.

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