Holders of Senegal’s $2.2bn bonds warn against debt write-down — The Rio Times

A group of holders of Senegal’s international bonds with a face value of about $2.2 billion warned the country’s authorities in writing against a possible reduction in the principal amount of the debt. As The Rio Times reports, the letter said that such a move could significantly delay restructuring negotiations.

Bondholders’ position

The group holds bonds with a face value of $2.2 billion out of Senegal’s total $5.2 billion in international debt securities. This amounts to approximately 42% of all such obligations. The letter was sent in response to the government’s request to the largest creditor groups regarding their key negotiating terms.

According to Senegalese media, the group’s financial adviser is Alvarez & Marsal, while its legal adviser is the U.S. law firm White & Case. At the same time, the letter itself has not been made public, and companies involved in the negotiations have not confirmed the position described in the reports.

Restructuring plan

On September 1, Senegal’s Ministry of Economy, Finance and Planning presented the PTDS public debt settlement plan. The government intends to use the updated G20 Common Framework mechanism and conduct parallel negotiations with all external creditors. Debt denominated in CFA francs was not included in the plan, as the regional market is an important source of financing for the state.

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On October 6, International Monetary Fund staff held the first virtual meeting between representatives of Senegal and external creditors. According to local media reports, Dakar expects to reach agreements in principle by December.

IMF program

IMF staff have already reached a staff-level agreement with Senegal on a new Extended Credit Facility program worth about $2.2 billion. Its launch requires approval by the fund’s executive board. The country’s government expects to receive the first payment as early as November.

According to Senegalese authorities, the budget deficit fell from 13.4% of GDP in 2024 to 6.4% in 2025. At the same time, the government forecasts that economic growth will slow from 6.7% in 2025 to 2.7% in 2026.