A group of bondholders holding Senegal's sovereign bonds has organized and hired White & Case as their legal counsel. This move comes as Senegal announced plans to rework its debt, with some investors estimating potential recovery values as much as 60% below par. The nation intends to pursue a debt reprofiling, rather than a full restructuring, which involves extending maturities and renegotiating interest rates to make its loans sustainable and qualify for an International Monetary Fund program.
Senegal's Prime Minister, Ahmadou Al Aminou Lo, confirmed that the country is seeking a debt reprofiling. The uncertainty surrounding how the debt revamp burden will be shared among creditors has already led to a repricing of Senegal's euro- and dollar-denominated bonds since the government's announcement on September 1st.
At least eight funds holding Senegalese bonds have formed this creditor group in anticipation of the upcoming debt talks. The appointment of White & Case signifies the bondholders' preparation for negotiations as Senegal aims to adjust its debt terms to improve its financial health.
