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

37 Pages Posted: 5 Sep 2014

See all articles by Mauro Mecagni

Mauro Mecagni

International Monetary Fund (IMF)

Jorge Iván Canales-Kriljenko

International Monetary Fund (IMF)

Cheikh Anta Gueye

International Monetary Fund (IMF)

Yibin Mu

International Monetary Fund; Harvard University; World Bank

Masafumi Yabara

International Monetary Fund (IMF)

Sebastian Weber

International Monetary Fund (IMF)

Date Written: August 8, 2014

Abstract

This paper 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.

Keywords: Frontier markets, Africa

JEL Classification: G15, G18, E60

Suggested Citation

Mecagni, Mauro and Canales-Kriljenko, Jorge Iván and Gueye, Cheikh Anta and Mu, Yibin and Yabara, Masafumi and Weber, Sebastian, Issuing International Sovereign Bonds Opportunities and Challenges for Sub-Saharan Africa (August 8, 2014). Available at SSRN: https://ssrn.com/abstract=2491120 or http://dx.doi.org/10.2139/ssrn.2491120

Mauro Mecagni

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Jorge Iván Canales-Kriljenko

International Monetary Fund (IMF) ( email )

700 19th Street N.W.
Washington, DC 20431
United States

Cheikh Anta Gueye

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Yibin Mu (Contact Author)

International Monetary Fund ( email )

1700 19th Street, NW
Washington, DC 20431
United States

Harvard University ( email )

Cambridge, MA 02138
United States

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Masafumi Yabara

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Sebastian Weber

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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