AFG Capital Ltd has hailed the Gabonese government’s successful return to the international bond markets, following its role as the exclusive financial advisor in structuring a landmark $920 million sovereign bond issuance. The transaction underscores AFG Holding’s growing influence in facilitating large-scale sovereign deals across Africa.
The operation, executed alongside global banking partners Cygnum Capital and Citigroup Global Markets—acting as arrangers—and legal counsel White & Case, attracted robust demand from institutional investors. This milestone marks Gabon’s first foray into international debt markets in years, signaling renewed investor confidence in the country’s economic trajectory.
Record demand drives oversubscription
According to an official statement from Gabon’s Ministry of Economy, Finance, Debt Management, and Price Control, the bond issuance was heavily oversubscribed. Demand exceeded expectations, allowing Libreville to raise an additional $170 million beyond its initial target of $750 million, ultimately securing $920 million.
The bond carries a 9.375% coupon, a seven-year maturity, and a three-year grace period, with the final maturity date set for 2033. Proceeds will fund critical public investment projects and help settle outstanding state arrears, as outlined in the revised 2026 budget law.
The ministry highlighted the pivotal role of a global investor roadshow, personally championed by President Brice Clotaire Oligui Nguema, in driving the transaction’s success.
A strategic move amid regional trends
Gabon’s return to the bond markets aligns with a broader trend in Central Africa’s Economic and Monetary Community (CEMAC). Neighboring nations have also tapped international markets this year: Cameroon raised $750 million in January, followed by Republic of Congo with $850 million in May. Gabon now stands as the third CEMAC member to access global finance in 2026.
Meanwhile, Libreville continues negotiations with the International Monetary Fund (IMF), with an IMF review mission scheduled for September. The discussions aim to finalize an economic and financial program before year-end.
Marie Dorothée