Gabon sold its $920 million international bond issue in July 2026 at 87.422% of face value, a discount that raised the securities’ yield to about 12.6%, according to the World Bank. The 9.375% coupon announced at issuance is lower than the overall yield offered to investors.
The gap reflects the price paid when the bonds were issued. Investors paid approximately $87.42 for each $100 of face value, while coupon payments are calculated on the full nominal amount. The contractual repayment of principal adds to those cash flows, accounting for the yield reported in the World Bank’s 2026 Gabon Economic Update.
Gabon’s government announced the final terms on 30 July for the seven-year bond, which matures in 2033. The structure includes a three-year grace period on principal repayments. The proceeds are intended to finance public investment projects and settle arrears under the country’s revised 2026 budget.
Risk premium remains high
The World Bank reports that the spread on Gabonese sovereign debt narrowed from 1,049 basis points at the end of 2025 to 608 basis points in early August 2026. Its cited African average stood at 385 basis points at that time, leaving Gabon’s borrowing premium substantially higher than the regional benchmark.
The Bank links the cost of the July issue to pressure on public finances and existing debt-service obligations. The same report says Gabon’s revised 2026 budget provides for a total of $1.5 billion in external financing during the year.