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Ivory Coast secures $800m loan to refinance debt amid credit upgrade

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Ivory Coast is in the process of securing an $800 million loan from a consortium of banks, including Standard Chartered Plc, to refinance upcoming debt maturities, according to sources familiar with the deal.

Other banks involved in the financing include Nedbank Group Ltd. and Rand Merchant Bank. The sources, who requested anonymity due to the private nature of the information, noted that the transaction is expected to conclude shortly.

Separately, Mitsubishi UFJ Financial Group Inc. (MUFG) is arranging a €400 million ($421 million) loan as part of a debt-for-development swap initiative. This transaction will enable Ivory Coast to replace a portion of its costly commercial debt with a more favorable loan, supported by a partial guarantee from the World Bank. The 15-year loan offers significantly improved terms and will allow the West African nation to bolster its fiscal position while addressing development priorities.

Ivory Coast’s efforts to refinance its debt come on the heels of a credit rating upgrade by S&P Global Ratings in October. The agency raised the country’s rating from BB- to BB, citing economic benefits from higher cocoa prices and increased exports. The improved rating brings Ivory Coast a step closer to investment-grade status and enhances its ability to secure favorable financing terms.

Debt-for-development swaps, which align debt restructuring with environmental and social goals, are becoming increasingly popular among emerging-market governments. These arrangements often involve guarantees from public finance institutions, reducing borrowing costs for nations grappling with high-interest debt.

The World Bank highlighted the benefits of the swap in a December 5 statement, describing it as a strategic move to reduce Ivory Coast’s debt burden while channeling resources into critical development projects.

Representatives for Ivory Coast, Standard Chartered, MUFG, Nedbank, and Rothschild & Co.—which has been advising the country—declined to comment on the transactions. Rand Merchant Bank has yet to respond to requests for comment.

These developments underscore Ivory Coast’s proactive approach to debt management, leveraging its improved credit standing and favorable market conditions to secure long-term financial stability.

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