The Democratic Republic of Congo has drawn strong investor demand for its debut Eurobond, with orders reaching more than $5.2 billion for a $1.25 billion issuance, allowing the government to price the bonds tighter than initially indicated despite its speculative credit rating.
In a statement on Thursday, the finance ministry said the orderbook was more than four times oversubscribed, attracting participation from over 110 international investors.
The bond was issued in two tranches, with coupons set at 8.75% and 9.5% Initial price guidance had been higher, at around 9.125% for the shorter tenor and 10% for the longer-dated note, but strong demand enabled the sovereign to lower borrowing costs.
“This high participation of investors and oversubscription reflects growing investor confidence in the Democratic Republic of the Congo’s outlook,” finance minister Doudou Roussel Fwamba Likunde said, pointing to recent efforts to stabilise the economy and strengthen fiscal management.
The strong reception comes despite the country’s B-sovereign rating from S&P, which places it firmly in speculative territory. While the agency revised its outlook to positive in January, it flagged ongoing risks linked to governance and security challenges.
S&P said the improved outlook reflects expectations that the country will sustain robust growth, strengthen foreign exchange reserves and improve tax collection under ongoing fiscal reforms, supported by its IMF programme.
Strong mining output— a key driver of export earnings — is also expected to bolster external balances.
The government says macroeconomic conditions have improved in recent years. “Our economy is delivering strong growth of around 7 per cent over the past four years, inflation has fallen sharply from 20 per cent in 2023 to low single digits, and public debt remains among the lowest globally, below 20 per cent of GDP,” Likunde said.
Still, risks remain. The security situation continues to weigh on investor sentiment and poses a potential threat to fiscal stability, even as diplomatic efforts show signs of progress. Weak institutional capacity and a narrow revenue base also continue to constrain the country’s credit profile.
The proceeds from the Eurobond will be channelled into infrastructure, energy and social development projects, as part of a broader effort to diversify funding sources beyond concessional financing.
“Our ambition is to become a regular sovereign issuer and this transaction lays the foundation for continued access to international financial markets,” the minister said, adding that authorities remain committed to maintaining debt sustainability in line with the IMF programme.
The transaction underscores a growing willingness among investors to re-engage with higher-yielding frontier markets, particularly those backed by reform momentum and commodity-driven growth, even as underlying risks persist.
