The Democratic Republic of Congo (DRC) has announced plans to raise $750 million through its first-ever Eurobond issuance in April to finance critical infrastructure projects.
Finance minister Doudou Fwamba Likunde, in a recent interview, revealed that the proposed bond will fund road construction and power generation projects drawn from a broader $3 billion public investment pipeline.
The transaction will serve as the first tranche of a wider foreign-currency borrowing programme approved by the Council of Ministers, which allows for up to $1.5 billion in issuances through 2026.
Likunde noted that Citigroup will lead the deal, with Rawbank acting as local partner, alongside advisory support from Rothschild & Co and legal counsel from White & Case.
Officials said the government intends to stagger its entry into global debt markets to manage refinancing risks and avoid excessive exposure to external shocks.
The planned sale marks a major shift in how the resource-rich nation finances development.
Investor dilemma
For investors, the offering presents a familiar frontier-market trade-off: strong growth fundamentals and low public debt on one side, and elevated political and security risks on the other.
The DRC currently has one of the lowest debt burdens in sub-Saharan Africa. Public debt stood at about $13.17 billion at the end of 2024, equivalent to roughly 18.5% of gross domestic product, well below the regional average of nearly 59%, according to the International Monetary Fund.
Inflation remains subdued at around 2%, while foreign exchange reserves exceed $7.4 billion, covering about three months of imports — a record level for the country.
Economic growth has also accelerated, supported by rising global prices for copper and gold, which dominate the country’s export base. The IMF projects the DRC will grow by an average of 5.4% annually through 2030, placing it among Africa’s faster-expanding economies.
“We want a structured offer that guarantees fiscal sustainability without exposing us to excessive risks,” Fwamba said, adding that the government is focused on building long-term relationships with global investors rather than pursuing opportunistic borrowing.
However, the timing of the bond sale is complicated by deteriorating security conditions in the eastern part of the country.
Violent attacks by armed groups, particularly Rwanda-backed M23 rebels, have intensified in recent years, displacing hundreds of thousands of people and disrupting economic activity in several mineral-rich regions.
The conflict escalated in 2025, with insurgents capturing key towns and trade corridors, deepening the political crises. Peace talks between government and rebel factions are ongoing, but progress remains slow.
Risk premiums
Market participants say these risks are likely to be reflected in pricing.
While demand for high-yield African sovereign debt has remained resilient, investors are expected to demand a significant risk premium to compensate for security and political concerns.
By comparison, neighbouring Republic of Congo issued a Eurobond last year at a yield of 13.7%, according to Bloomberg data. The DRC is currently rated B3 by Moody’s, the same credit level as Nigeria and Angola, placing it firmly in speculative-grade territory.
Still, Congolese authorities argue that accessing international debt markets is a necessary step in diversifying funding sources and accelerating infrastructure investment in a country with vast development gaps.
The $750 million raised will primarily support transport and energy projects, sectors seen as critical for unlocking private investment, reducing logistics costs and improving electricity access across the economy.
If successful, the issuance could pave the way for future bond sales and gradually integrate the DRC into global capital markets. But for now, the transaction will serve as a litmus test of whether investors are willing to look past conflict risks and buy into the country’s long-term growth story.
