- The Republic of the Congo raised $850 million through a 2036 international bond offering that attracted more than $1.6 billion in investor demand.
- The operation marked Congo’s fourth international capital markets transaction in six months and helped reduce the country’s risk premium by more than 400 basis points.
- Despite the successful issuance, ratings agencies continue to classify Congo as a speculative borrower amid high debt levels and heavy dependence on oil exports.
The Finance Ministry of the Republic of the Congo announced on Wednesday, May 20, that the country had successfully raised $850 million through a new international bond issue maturing in 2036. The operation carried a 9.5% coupon and attracted investor demand exceeding $1.6 billion, nearly double the amount offered.
The transaction marked Congo’s fourth operation on international capital markets in six months following Brazzaville’s return to the London market in November 2025 after nearly two decades of absence.
According to the official statement, the country’s sovereign risk premium declined by more than 400 basis points during the period, marking the sharpest drop recorded in the Central African sub-region. “This operation demonstrates that the Republic of Congo is now a credible and recognized sovereign issuer on international markets,” said Christian Yoka, Minister of Finance, Budget and Public Portfolio, who took office in January 2025 after previously serving as Africa director at the French Development Agency.
Refinancing Operation Keeps Debt Levels Stable
The ministry said the bond proceeds would not create additional debt obligations. Instead, the government will use the funds to buy back part of a bond maturing in 2032 and repay debt lines on the regional market that mature in June and July 2026. The operation should help extend the average maturity of the debt portfolio and reduce refinancing needs by more than $230 million over the next five years. The government will repay the bond principal in five equal annual installments starting in 2032.
The authorities issued the bond under the Regulation S framework and listed it on the main market of the London Stock Exchange, with Citigroup acting as lead arranger.
Ratings Agencies Continue to Monitor Debt Risks
The Republic of the Congo remains classified as a speculative-grade borrower. Fitch Ratings maintained the country’s rating at CCC+ on Feb. 20, 2026, while S&P Global Ratings also maintained the same rating in January. Both agencies highlighted the vulnerability of an economy where hydrocarbons still account for more than 80% of export revenues, according to data from the International Monetary Fund.
Public debt reached 97.2% of gross domestic product at the end of 2025, approaching the 100% threshold and remaining well above the 70% ceiling set under convergence criteria of the Economic and Monetary Community of Central Africa.
In October 2024, the government restructured 53% of its domestic bonds in an operation that Fitch classified as a distressed debt exchange. “We must improve the quality of Congo’s sovereign signature because the country has previously defaulted on creditor payments,” said Alphonse Ndongo during an interview with Radio France Internationale in January 2025, when authorities appointed Christian Yoka as finance minister.
Central African Sovereigns Return to Markets
Countries across the Central African sub-region have recently increased their presence on international debt markets. Cameroon raised $750 million in January 2026 through a five-year bond carrying a yield of 10.12%, according to data reported by Bloomberg.
Meanwhile, the Democratic Republic of the Congo completed its first-ever international bond issue in April, raising $1.25 billion across two tranches priced at 8.75% and 9.5%. According to a monitoring report published by the World Bank in June 2025, Congo formally remains “in debt distress” under IMF criteria, although the institution considers the debt sustainable.
Brazzaville requested a new financing program from the International Monetary Fund in April following the expiration in March 2026 of a previous three-year arrangement under the Extended Credit Facility, which had enabled disbursements totaling $430 million.
The May 20 issuance came five days before the opening in Brazzaville of the 61st Annual Meetings of the African Development Bank, scheduled for May 25-29 at the Kintélé International Conference Centre under the theme of mobilizing resources to finance African development.
