The Democratic Republic of Congo has announced plans to raise $750 million through its first-ever Eurobond issuance, scheduled for April, aimed at financing vital infrastructure projects across the country.
Finance Minister Doudou Fwamba Likunde recently shared details of the landmark deal, explaining that proceeds will target key road construction and power generation initiatives within a broader $3 billion public investment framework.
This initial Eurobond is part of a wider foreign-currency borrowing program authorized by the Council of Ministers, which permits up to $1.5 billion in issuances through 2026.
Leading the transaction will be Citigroup, with local banking partner Rawbank. The deal will also receive advisory support from Rothschild & Co and legal counsel from White & Case. Officials emphasize a cautious, phased approach to entering global debt markets to mitigate refinancing risks and avoid excessive vulnerability to external shocks.
For the resource-rich nation, this issuance marks a strategic shift in development financing, opening doors to international capital markets.
However, the bond sale poses a complex proposition for investors, balancing the Democratic Republic of Congo’s strong economic fundamentals and low public debt against ongoing political and security challenges.
As of the end of 2024, the country’s public debt stood at approximately $13.17 billion—just 18.5% of GDP—well below the sub-Saharan African average of nearly 59%, according to the IMF. Inflation remains modest at around 2%, and foreign exchange reserves exceed $7.4 billion, covering about three months of imports, a record for the country.
Supported by rising global copper and gold prices, the DRC’s economy is projected by the IMF to grow at an average rate of 5.4% annually through 2030, ranking it among Africa’s fastest-growing economies.
Minister Fwamba emphasized that the government seeks a “structured offer” that ensures fiscal sustainability without undue risk, aiming to build long-term partnerships with global investors rather than pursuing short-term borrowing.
Security concerns, however, remain a significant hurdle. Violent clashes involving armed groups, especially the Rwanda-backed M23 rebels in the eastern regions, have escalated since 2025, disrupting trade and displacing communities.
Peace negotiations continue, but progress has been slow, casting a shadow over the investment climate.
Market analysts expect these risks to be reflected in the bond’s pricing, with investors likely demanding a higher risk premium. For context, the neighboring Republic of Congo issued a Eurobond last year at a yield of 13.7%.
The DRC currently holds a Moody’s rating of B3, placing it in speculative-grade territory alongside Nigeria and Angola.
Despite these challenges, Congolese officials maintain that tapping into international debt markets is essential for diversifying funding sources and accelerating infrastructure development—particularly in transport and energy sectors critical to boosting private investment and improving economic efficiency.
If successful, this initial $750 million issuance could pave the way for subsequent bond offerings and strengthen the DRC’s integration into global capital markets.
For now, the world will watch closely to see if investors are willing to look beyond security risks and back the country’s long-term growth ambitions.
Reporting by Noko David
