Swaps Helped Senegal Raise $1.3 Billion Despite Debt Concerns

Senegal raised 721 billion CFA francs ($1.3 billion) using derivatives to secure cheaper foreign-currency loans last year at a time when worries about its debt effectively closed international market access.

The West African nation conducted seven so-called total return swap transactions with lenders, including Africa Finance Corp., Société Générale SA and First Abu Dhabi Bank PJSC between April and November, Finance Minister Cheikh Diba told reporters in Dakar, the capital on Thursday. The deal cost about 7% compared with the 11–12% seen on international markets, he said.