Senegal: Mandates Sodali for Eurobond Holder Identification

• Senegal has appointed Sodali & Co to identify holders of its international Euro and Dollar bonds maturing between 2028 and 2048.
• This identification process, reported on September 29, 2026, is a formal step towards engaging creditors for debt treatment discussions.
• A creditor group, advised by White & Case, formed on September 11, advocating for an "economically justifiable, equitable, and sustainable" debt treatment.
• Senegal's Debt Treatment Plan, announced September 1, aims to reduce debt service and free up funds for public investment, utilizing a strengthened G20 Common Framework.
• The debt treatment follows IMF discussions prompted by previously unreported debts, with the IMF estimating public debt at 132% of GDP by end-2024.

The Senegalese government has initiated a formal process to engage with its international creditors, marking a significant step in its debt treatment plan.

The Senegalese government has initiated a formal process to engage with its international creditors, marking a significant step in its debt treatment plan. On September 29, 2026, Reuters, citing a report by Anait Miridzhanian, revealed that Dakar has appointed Sodali & Co to undertake Senegal Sodali Eurobond holder identification. This mandate aims to pinpoint the holders of the nation's international bonds and streamline communication channels with them.

A document provided to Reuters, bearing the signature of Minister of Economy, Finance, and Planning Cheikh Diba, outlines the specific mission entrusted to Sodali & Co Senegal. The identification effort focuses on Euro and Dollar-denominated obligations that are set to mature between 2028 and 2048. The document explicitly states that any information collected during this process will be handled with strict confidentiality, to be utilized solely by the Republic of Senegal and its designated advisors. This move underscores the government's commitment to a structured and confidential dialogue as it prepares for Dakar debt restructuring communication.

In anticipation of these discussions, a group of Senegal international bondholders announced its formation on September 11. This collective has retained the legal expertise of White & Case to serve as their advisor, signaling a coordinated approach from a segment of the creditor community. The group has publicly called for a debt treatment that is "economically justifiable, equitable, and sustainable," emphasizing the need for solutions grounded in credible economic assumptions.

Furthermore, the White & Case Senegal creditors advocate for a shared burden among all of Senegal's financial creditors, ensuring that the effort required for debt resolution is distributed fairly. While the precise composition of this creditor group and the total value of the securities they represent have not been disclosed, their early organization highlights the proactive stance of investors. These developments follow Senegal's official announcement of its Debt Treatment Plan on September 1, which aims to alleviate the weight of debt service on the national budget and create fiscal space for public investment. The plan envisions consultations with partners, leveraging a strengthened version of the G20 Common Framework, and specifically targets external debt under discussion, rather than encompassing all public obligations. The exact terms and conditions of this operation are still subject to negotiation.

The impetus for this comprehensive Senegal debt treatment plan stems from a challenging economic landscape and recent financial revelations. According to government figures, Senegal's budget deficit saw a notable reduction, decreasing from 13.4% of GDP in 2024 to 6.4% in 2025. However, the nation anticipates a significant slowdown in economic growth, projected to reach only 2.7% in 2026. This forecast comes amidst constrained budgetary margins and mounting pressure from energy expenditures, factors that will critically influence the state's capacity and pace for repayment negotiations with its creditors.

The broader context for Senegal's debt treatment discussions includes ongoing engagements with the International Monetary Fund (IMF), which were prompted by the discovery of previously unreported debts. The IMF estimates that Senegal's public debt stood at 132% of its GDP at the close of 2024. On September 1, the IMF's services and Senegalese authorities reached a technical agreement for a three-year program valued at approximately $2.2 billion, providing a crucial international support framework as the country navigates its fiscal challenges and seeks a sustainable path forward.

Lawyers representing holders of Senegalese Eurobonds or international bonds should advise clients to engage with Sodali & Co and monitor communications from the Senegalese government, as this marks a formal step towards debt treatment negotiations. Compliance officers in institutions holding such debt must ensure they are prepared to respond to identification requests and participate in upcoming discussions.

Source: Original reporting via Reuters