BREAKING NEWSJuly 24, 2025 at 7:18 PM UTC
TLDR
- Burkina Faso’s national hydrocarbons company, SONABHY, is raising 30 billion CFA francs ($53.6 million) through a bond issuance
- The six-year bonds are offered to the public at 10,000 CFA francs per bond, with an annual gross interest rate of 8.1%
- The issuance is partially guaranteed by the state, which has committed to repay 100% of principal and 74% of interest
Burkina Faso’s national hydrocarbons company, SONABHY, is raising 30 billion CFA francs ($53.6 million) through a bond issuance backed by receivables securitization. The funds will finance new hydrocarbon storage facilities.
The six-year bonds are offered to the public at 10,000 CFA francs per bond, with an annual gross interest rate of 8.1%. Subscriptions run from July 21 to September 19, 2025.
The issuance is partially guaranteed by the state, which has committed to repay 100% of principal and 74% of interest. Capital will be repaid semi-annually after a one-year grace period. A listing on the BRVM is expected.
SONABHY, which generated 1,442.95 billion CFA francs in revenue in 2024, is a key contributor to Burkina Faso’s public finances and energy supply chain.
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Key Takeaways
The SONABHY transaction reflects a growing trend in West Africa—using securitized public-sector receivables to fund infrastructure. By guaranteeing most of the capital and interest, Burkina Faso is reducing investor risk and unlocking domestic capital for energy security. With ongoing global fuel price volatility, countries are turning to strategic reserves to reduce dependence on imports. SONABHY’s new facilities are expected to buffer the country against supply shocks and price spikes, while contributing to fiscal sustainability. The bond also shows increasing integration of WAEMU states into regional capital markets like the BRVM. For investors, these state-backed deals offer high yields with relatively low credit risk—especially when tied to essential services like fuel distribution.