Issuing International Sovereign Bonds: Opportunities and Challenges for Sub-Saharan Africa

Feb 28, 2014 | M. Mecagni, J.I.C. Kriljenko, A. Gueye et al. | IMF
This chapter examines the rise in international sovereign bonds issued by African frontier economies and recommends policies for potential first-time issuers. Maintaining prudent fiscal frameworks consistent with debt sustainability is crucial for deriving lasting benefits from additional financing. Beyond that, first-time international sovereign bond issuers should focus on improving the composition and profile of their public debt under an appropriate debt management framework. Adhering to best operational practices for first-time issuance, and locking in low interest rates while smoothing the maturity profile of the entire public debt portfolio. International sovereign bonds may not be the best option for financing infrastructure investment, and other funding options may need careful consideration.