Issuing International Sovereign Bonds: Opportunities and Challenges for Sub-Saharan Africa
Departmental Papers, June 4, 2014
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- Issuing International Sovereign Bonds: Opportunities and Challenges for Sub-Saharan Africa
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Bibliographic details
- Authors: Mauro Mecagni, Jorge I Canales Kriljenko, Cheikh A. Gueye, Yibin Mu, Masafumi Yabara, Sebastian Weber
- Published: June 4, 2014
- Series: Departmental Papers
- DOI: https://doi.org/10.5089/9781475523102.087
Summary
- This African Department Paper examines the rise in international sovereign bonds issued by African frontier economies and recommends policies for potential first-time issuers.
- Authors: Mauro Mecagni, Jorge I Canales Kriljenko, Cheikh A. Gueye, Yibin Mu, Masafumi Yabara, Sebastian Weber.
- Publication date: June 4, 2014.
- Series: Departmental Paper No. 2014/007, Issue: 007, Volume: 2014.
- Pages: 37.
- DOI: https://doi.org/10.5089/9781475523102.087.
- ISBN: 9781475523102.
- ISSN: 2616-5333.
- Stock No: IISBEA.
Major themes and focus
- Examination of the recent increase in international sovereign bond issuance by African frontier economies.
- Analysis of the characteristics of the sovereign bond instrument, including coupon rate, bond proceeds, and issuance terms.
- Consideration of implications for government debt management and public financial management (PFM).
- Policy guidance targeted at potential first-time sovereign bond issuers in Sub-Saharan Africa.
Key subjects and keywords
- Subject tags: Bonds, Financial institutions, Government debt management, International bonds, Public debt, Public financial management (PFM), Sovereign bonds.
- Keywords include: Africa; bond issue; bond proceeds; Brady bond; bullet Eurobond; characteristics of the sovereign bond instrument; coupon rate; debt management; debt service; DP; DPPP; Eurobond; Eurobond holder; fiscal policy; foreign currency; Global; Government debt management; International bonds; proceeds; sovereign bond; sovereign bond bond issue; sovereign bond issuance terms; Sovereign bonds; standard-sized sovereign bond; Sub-Saharan Africa; U.S. dollar.
Findings and policy recommendations (as summarized)
- Documents the rise of international sovereign bond issuance among African frontier economies.
- Recommends policies for potential first-time issuers focused on:
- Careful assessment of issuance terms and characteristics of the sovereign bond instrument (for example, coupon rate and denomination).
- Strengthening government debt management frameworks to manage debt service implications of foreign-currency-denominated sovereign bonds.
- Integrating sovereign bond issuance decisions into broader fiscal policy and public financial management strategies.
- Considering market timing and the structure of bond proceeds to align with development and fiscal objectives.
Source: Issuing International Sovereign Bonds: Opportunities and Challenges for Sub-Saharan Africa, Departmental Paper No. 2014/007, June 4, 2014.