Gabon is returning to the dollar market shortly after its $920 million eurobond sale. The OPEC member has appointed BofA Securities as the single lead manager to host fixed income investor meetings beginning Wednesday, paving the way for a new issuance.
A person with knowledge of the transaction said the country is targeting $580 million with an eight-year final maturity, and asked not to be identified because the plans are not yet public. The move comes as Gabon is discussing a new funded program with the International Monetary Fund. Its previous $553-million IMF arrangement was suspended after a coup in August 2023.
Gabon's assets rallied after audit results released this month indicated public debt is roughly 20 percent below earlier estimates. They then came under renewed pressure when the draft budget for next year proposed raising 1.1 trillion CFA francs ($1.9 billion) via international capital markets to plug the budget gap, a path that could narrow fiscal space.
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Gabon's bonds due 2031 declined for a sixth session, dropping 1.2 cents to 84.3 cents on the dollar at 12:26 p.m. in London, placing them among the laggards in emerging markets. Notes maturing in 2029 fell for a seventh day by 0.7 cent to 94.4 cents. For everyday investors, the through-line is simple: funding plans, IMF talks, and new audit numbers are shaping sentiment, so headlines out of Libreville are doing a lot of the work on prices.
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