Cameroon is in talks with Rothschild & Co. to advise on a planned Eurobond sale in the first half of this year, Treasury officials said.
“The government is in negotiations with Rothschild to pilot the next Eurobond for Cameroon,” Department of Treasury Director Tela Samuel said by phone from the capital, Yaounde. A Rothschild spokesperson declined to comment when contacted.
The proceeds from the sale will be used to help repay $750 million of debt the government issued in 2015, Treasury Director-General Moh Sylvester said by phone on Friday. “The intention is to issue before June 30,” he said.
Cameroon’s planned sale comes as increased spending by the U.S. on economic stimulus is driving up global borrowing costs. It would follow offerings by Benin, Egypt, Ivory Coast and Ghana so far this year, while Kenya and Nigeria have announced plans for issues.
The debt sales are taking place as African nations seek funds to roll over debt and finance budgets strained by the coronavirus pandemic. Other countries, including Ethiopia, have opted to seek debt relief under a Group-of-20 initiative.
Yields on Cameroon’s 2015 bonds have almost halved after reaching a record high in April last year, and traded at 7.16% in London on Friday.
Culled from Bloomberg