Clarification from the Senegalese Ministry of Finance and the Budget regarding TRS-type transactions
Following an article published in the international press concerning Senegalâs use of financial instruments known as Total Return Swaps (TRS), the Ministry of Finance and the Budget wishes to provide the following clarification:
The transactions in question form part of the strategy to diversify sources and instruments for raising funds, against an international backdrop characterised by tighter market access conditions. In light of this context, an in-depth analysis of this instrument has been carried out with a view to its implementation on the local financial market in 2025.
The use of TRS forms part of the policy to broaden the investor base within the regional financial market, by attracting foreign investors in order to deepen the domestic market and improve its liquidity.
These leading investors generally require access to foreign exchange in order to obtain local currency for their subscriptions to government securities, as well as foreign currency to repatriate interest payments and maintain the value of their portfolios. The structure put in place takes these requirements into account whilst managing the risk for the State.
The borrowing terms are also much more favourable. Indeed, the net rate borne was approximately 7.1%, which was significantly lower than rates on international markets, particularly those of the Eurobond markets, where average yields for the year stood at 12% and 11% on euro-denominated bonds (maturing in 2028 and 2037 respectively) in 2025. Consequently, the financing operations enabled the Treasury to achieve substantial savings compared with the alternatives.
They were conducted on the government securities market through seven (7) transactions between April and November 2025, in accordance with the issuance schedule, consistent with the Medium-Term Debt Management Strategy (MTDMS) and in compliance with the parliamentary authorisation set out in the various finance laws of 2025 (LFI 2025, LFR 1 2025 and LFR 2 2025).
This funding takes the form of government bond issues carried out through auctions on the government bond market. The results of these transactions are published after each issue, in accordance with market transparency rules. Generally, the local press uses these reports to report on these market transactions, which are fully transparent to the public and market participants. The statement by the Minister for Finance and the Budget to the National Assembly on 29 November 2025 proves, if proof were needed, the absence of concealment and the transparency surrounding the use of this instrument. The use of TRS in the context of public debt market issues was mentioned in the economic and financial report annexed to the 2026 Finance Act (page 39): https://www.finances.gouv.sn/app/uploads/REF-LFI-2026.pdf
The implementation of the 2025 financing plan was regularly shared with the International Monetary Fund (IMF), with whom several written exchanges and meetings took place regarding the details of the mobilisation of funds, including TRS operations.
All these operations were structured in accordance with the legal and regulatory framework, consistent with the 2025 financing plan as set out in the Finance Act.
The funds raised have been allocated to the implementation of the State budget for the 2025 financial year. These funds, raised as part of the implementation of the 2025 financing plan, were used exclusively to cover the requirements of that plan and cannot in any way be used to meet those of the 2026 financial year, which are currently being addressed as part of the implementation of the 2026 financing plan. Indeed, it is common knowledge that the Eurobond maturity referred to in the article was honoured in March 2026.
The Government wishes to reaffirm that the 2025 financing plan was rigorously implemented in accordance with parliamentary authorisation and to meet the 2025 financing requirements, as evidenced by our various 2025 budget implementation documents available to the public.
Senegal remains fully committed to the prudent, transparent and responsible management of its public debt.
To this end, the Ministry of Finance and the Budget maintains a regular and constructive dialogue with technical and financial partners, notably the International Monetary Fund (IMF), in accordance with established frameworks for exchange, and intends to continue this approach.
The Ministry of Finance and the Budget wishes to reiterate that the use of diversified financing instruments is a key pillar of its resource mobilisation strategy, which is regularly addressed in its communications, notably during its appearance before the National Assembly on 29 November 2025. Consequently, the operations mentioned are fully in line with a coherent, controlled and committed approach, accompanied by transparent communication with partners and the national parliament.
The Ministry of Finance and the Budget reaffirms that, in accordance with the Senegalese Governmentâs policy, it remains committed to transparency and the quality of economic and financial information. As such, it will continue to make available to the public, through its authorised channels, the information necessary for a proper understanding of the Senegalese Governmentâs policies.