Gabon makes strong comeback with $920 million bond issuance

AFG Capital Ltd has proudly announced its pivotal role in Gabon’s triumphant return to the international bond markets. As the exclusive financial advisor to the Gabonese government, AFG Capital structured a landmark sovereign bond issuance totaling 920 million US dollars—a figure that exceeded initial expectations by a significant margin.

This historic transaction, one of the largest sovereign bond deals in Africa for 2026, highlights the growing influence of AFG Holding’s specialized arm, AFG Capital, in facilitating high-stakes financial operations across the continent. The deal was co-arranged by Cygnum Capital and Citigroup Global Markets, with White & Case serving as legal counsel for the Gabonese state.

The announcement was met with overwhelming investor enthusiasm, leading to a massive oversubscription. The final issuance amount was raised to $920 million, surpassing the original target of $750 million by $170 million. This strong demand underscores renewed market confidence in Gabon’s economic stability and the government’s ongoing reform agenda.

The bond carries a 9.375% coupon, a seven-year maturity, and a three-year grace period before amortization begins, with the final maturity set for 2033. Proceeds from the issuance will be allocated to critical public investment projects and the settlement of outstanding state arrears, in line with the 2026 revised finance law.

Key drivers behind the transaction’s success

The Gabonese Ministry of Economy, Finance, Debt Management, and Public Participations confirmed the bond’s success in an official statement, emphasizing the critical role of a well-executed roadshow. The investor outreach initiative, personally championed by President Brice Clotaire Oligui Nguema, played a decisive part in securing broad institutional investor participation.

Gabon’s successful return to the international markets follows a similar trend in the Central African Economic and Monetary Community (CEMAC). Cameroon raised $750 million in January, while the Republic of the Congo secured $850 million in May. Gabon now stands as the third CEMAC member state to tap into global markets in 2026.

Pathway to economic recovery and IMF engagement

The bond issuance aligns with Gabon’s broader economic strategy outlined in the National Growth and Development Plan (PNCD) 2026-2030. This framework aims to restore macroeconomic balance and accelerate economic diversification, reinforcing investor trust in the country’s long-term prospects.

Looking ahead, Gabon is also advancing discussions with the International Monetary Fund (IMF). A technical review mission is scheduled to visit Libreville in September, paving the way for a potential economic and financial program by year-end.