Cameroon plans to raise an extra $300 million through its international bond maturing in January 2033, the Ministry of Finance announced in a statement published on 5 October. The transaction takes the form of a reopening of the existing issue rather than a separate new borrowing.
The outstanding security carries a 8.875% coupon and an initial nominal amount of $850 million, according to the ministry. If the full additional tranche is placed, the nominal outstanding on this line will reach $1.15 billion.
The funds sought are intended to cover priorities in the 2026 budget and continue clearing the government's payment arrears. Standard Chartered Bank is arranging the transaction, while Blend Finance and Horus Investment Group act as financial advisers.
The announcement is a statement of financing intent, not confirmation of a completed placement. The ministry has not disclosed a settlement date, an issue price or the yield ultimately demanded by investors.
The coupon alone is not enough to gauge the cost of the new tranche. Sika Finance estimated on 6 October that the bond was trading at between 95.5 and 96 cents on the dollar of face value, which then corresponded to a yield of about 10.1%. The effective cost will depend on the price at which the securities are actually sold.
The reopening allows Cameroon to add securities to a line already known to the market, which may improve its liquidity. However, it increases the budget's exposure to dollar financing and to a high market cost, while the funds raised will also be used to settle expenditure already committed.
The International Monetary Fund estimated on 1 October that Cameroon remained exposed to a high overall risk of debt distress. The institution expects a slight further weakening of the fiscal position in 2026, notably due to fuel subsidies linked to the international oil shock.
The IMF recommends greater mobilisation of domestic revenue and a larger use of concessional financing. The issue announced by Yaoundé should therefore be assessed on the basis of its final terms, which are still unknown, rather than on the coupon alone shown on the 2033 issue.