- Investors show strong confidence in Benin’s debt management
- Treasury bills heavily oversubscribed despite regional liquidity strain
COTONOU, BENIN – Benin has solidified its reputation as one of West Africa’s most trusted sovereign issuers, drawing robust investor demand for its debt securities in September 2025 despite tight regional liquidity.
The country’s total outstanding government securities reached 1.09 trillion CFA francs ($1.75 billion), marking a 2.43% year-on-year rise, according to data from UMOA-Titres.
The portfolio includes 38 active instruments — 966.31 billion CFA francs in Treasury Bonds (OATs) and 126.98 billion CFA francs in Treasury Bills (BATs). Coupon rates range between 5.1% and 6.5%, reflecting prudent debt management that favours medium- and long-term maturities.
Investor appetite surges
Benin’s latest bond sales highlight consistent investor appetite. In September, the government raised 33 billion CFA francs on a three-month Treasury Bill at an average rate of 5.00%. Bids totalled 84.21 billion CFA francs – nearly three times the amount offered – underscoring the market’s strong confidence in Benin’s fiscal discipline and stability.
Neighbouring Burkina Faso recorded 2.7 trillion CFA francs in outstanding securities (+2.22%), while Côte d’Ivoire remained the WAEMU’s dominant borrower with 6.7 trillion CFA francs, though slightly down 0.40% year-on-year. Benin’s yields, averaging between 5.7% and 6.9%, remain below regional peers – compared with 7.1% to 7.4% for Burkina Faso and over 8% for Côte d’Ivoire.
“The high coverage ratio illustrates strong market appetite for the Beninese issuer,” said UMOA-Titres in its report. “Benin’s Treasury continues to attract investors through consistent performance and transparency.”
A credible and stable borrower
Economists say Benin’s success lies in its political stability and credible fiscal management. The country’s September coverage ratio stood at 280.7% – nearly 86 points above the WAEMU average of 194.49% – signalling investor demand nearly tripled the amount offered.
“Given September’s results, Benin maintains an upward trajectory in the primary government securities market,” Ramanou Yessoufou, Professor of Economics at the University of Abomey-Calavi told Allen Dreyfus.
“Its ability to maintain low rates while generating strong interest demonstrates the robustness of its financing policy. In a context where regional demand remains strong, the country is establishing itself as a safe bet for investors seeking stable returns and controlled risk.”
While countries like Mali and Guinea-Bissau borrow at rates above 9%, Benin continues to secure funds at lower costs, reinforcing its reputation as a leading issuer in the sub-region. Regular participation from major banks and minimal yield spreads also signal a deep and stable market.
