Senegal's Eurobond Holders Unite, Appoint Legal Counsel Ahead of Debt Rework

Senegal's international bondholders have organised into a formal creditor group and retained the law firm White & Case to represent their interests, according to four sources with direct knowledge of the matter. The group comprises at least eight fund managers, though the individual firms were not identified.

The move comes as the West African nation prepares to rework its debt load, which ballooned after newly elected leaders in 2024 uncovered billions of dollars in borrowing that had been misreported by the previous administration. The total debt eventually exceeded $13 billion — roughly a quarter of the country's GDP — according to ratings agency S&P and other estimates.

The revelation prompted the International Monetary Fund to suspend a crucial lending programme. While some Senegalese officials initially resisted a restructuring, the scale of the debt made it difficult to convince the IMF that the country's finances were sustainable, a prerequisite for fresh financing.

Last week, the IMF and Senegal announced a staff-level agreement for a new $2.2 billion loan. Simultaneously, Senegal's economy ministry said it had agreed to an "enhanced common framework," referencing the G20 mechanism designed for low-income nations to restructure their debts.

White & Case, which declined to comment, has previously advised governments including Ethiopia and Ukraine in debt restructurings, as well as creditor groups in Lebanon and Sri Lanka. The appointment signals that bondholders are preparing for formal negotiations with Senegal under the G20 framework.