Baobab Senegal announces the emission of a bond for a total amount of FCFA 10 billion (EUR 15.2 million).

After a first bond issue in 2016, Baobab Senegal decided to use this long-term financing instrument again. This issue follows an external BBB+ rating in 2018 by WARA rating agency.

The structuring and placement of this transaction was carried out by Société Générale Capital Securities WA (ex SOGEBOURSE), which mobilized capital from institutional investors in the sub-region.

Mamadou Cissé, Chief Executive Officer of Baobab Senegal, explains: “We are proud of the success of this private placement bond issue which allows Baobab Senegal to continue to diversify its financing sources. Our business model once again demonstrates its efficiency and profitability in financing micro-enterprises and SMEs, recognized by investors. We want to accelerate our growth in the coming years, with a strengthened digital strategy, in order to maintain our leading position in microfinance in Senegal.”

Amadou Kane, Chairman of Baobab Senegal, confirms, “This bond issue is a real opportunity for Baobab Senegal, it secures long-term financial tools and competitive prices to continue to grow Baobab Senegal. The consolidation of our financial leverage allows us to look to the future with confidence in order to fulfill our mission of financial inclusion.”

“We are delighted with the success of this operation, which confirms the stability and continued growth of Baobab Senegal. It also confirms our will to use this financial tools for other Group’s subsidiaries.” says Arnaud Ventura, CEO and Founder of the Baobab Group.

Similarly to the first bond issue in 2016, African Local Currency Bond Fund played a key role in structuring and raising funds for this new bond issue. “We are very happy to have contributed to Baobab Senegal’s successful and fully subscribed bond issuance with an anchor investment from the ALCB Fund. With its mission to foster micro and small enterprises, Baobab fits in very well with the development mandate of the ALCB Fund,” said Karl von Klitzing, Chairman of the Board of the ALCB Fund.

About Baobab Senegal

Baobab Senegal opened the doors of its first branch in Dakar in September 2007. Subsidiary of the Baobab Group, the Institution’s mission is to provide a range of financial services to individuals, micro enterprises and SMEs.. The company operates under the joint supervision of the Ministry of Economy and Finance of Senegal and the Central Bank of West African States, with registration as a Decentralized Financial System. In its 10 years of existence, Baobab Senegal has become one of the market leaders, offering diverse services that are increasingly innovative and unique in the market. The institution has continued to grow by opening branches and other points of service; since 2014, Baobab Senegal launched a network of correspondents that brings its products and services closer to its customers and the remote areas. Today, Baobab covers almost the entire territory of Senegal. By December 2018, Baobab Senegal’s network constituted 446 agents and 44 branches, 10 of which are located in Dakar and its suburbs and 34 in the regions. The institution serves more than 331,000 clients. .