Ivory Coast attracts almost $10 billion in Eurobond bids

Ivory Coast attracted almost $10 billion in bids for its Eurobond auction on Thursday in a sale that came less than a month after a four-day mutiny by soldiers, according to a person familiar with the matter.

The West African nation received about $4.8 billion in orders for the dollar portion of its debt sale and a further 4.4 billion euros ($4.9 billion) for the second tranche by the time bookrunners announced final pricing terms, said the person, who asked not to be identified because a public announcement hasn’t been made. Ivory Coast issued $1.25 billion of 16-year bonds with a 6.25 percent rate and 625 million euros of eight-year notes yielding 5.125 percent.

Bruno Kone, a spokesman for the government, declined to comment when contacted by phone.

Ivory Coast proceeded with the bond sale even after the government of President Alassane Ouattara bowed to mutinous soldiers’ demands over bonuses, underscoring the political fragility of a country that defaulted as recently as 2011 during a conflict that was sparked by an election dispute.

African nations have benefited from rampant demand for emerging-market assets this year, driven by investors’ belief that the U.S. will raise interest rates slowly. Funds placed about $9 billion of orders for a 16-year Eurobond issued by Senegal last month, which also had a 6.25 percent yield. Read more on this.