Holders of Senegal's sovereign bonds have formed a creditor group and engaged White & Case as their legal counsel. This move comes as Senegal announced plans to rework its debt. The government clarified that it intends to pursue a "reprofiling" rather than a full restructuring, which means extending maturities and renegotiating interest rates to make its loans sustainable.
Senegal's Prime Minister, Ahmadou Al Aminou Lo, stated that the country is seeking to reprofile its debt to qualify for an International Monetary Fund program. The announcement of debt rework plans on September 1 has already led to a repricing of Senegal's euro- and dollar-denominated bonds.
Some investors are anticipating significant losses, with estimates suggesting a recovery value of as much as 60% below par. At least eight funds holding Senegal's bonds have formed this creditor group in anticipation of upcoming debt talks.
