The West African Development Bank (BOAD) has significantly increased its holdings of sovereign bonds, Reuters reports, as members of the West African Economic and Monetary Union (WAEMU) rely more heavily on the regional market to meet funding needs.

According to a note sent to investors on Monday, the Togo-based lender clarified that its purchase of member-country bonds is “exclusively part of its asset management strategy” and distinct from the loans and grants it provides as budget support. “In order to optimise treasury management and mitigate cost of carry, BOAD invests a portion of its available liquidity in the regional market, notably in bonds issued by member countries, which are regarded as among the safest financial instruments across the WAEMU region,” the statement said.

BOAD highlighted its long-standing record of reliability, noting that “over more than fifty years of operations, the institution has not recorded any payment default by a sovereign issuer.” Its June 2025 financial statement showed Ivorian bond holdings rose nearly 360 percent over six months, while Senegalese bonds increased by almost 65 percent.

Debt issuance within WAEMU is projected to jump 27.7 percent to 15.143 trillion CFA francs (27.86 billion US dollars) in 2026, according to Arouna Sow, an official at regional debt agency UMOA-Titres, speaking at a January conference. At the same event, Ivory Coast announced plans to raise 4.221 trillion CFA francs (7.69 billion US dollars) during the year.

Senegal, facing a hidden debt crisis from the previous administration, intends to raise 4.132 trillion CFA francs (7.54 billion US dollars). Its debt burden surged to 132 percent of gross domestic product at the end of 2024 from 78 percent in 2023, the International Monetary Fund reported, prompting a freeze of its lending programme after discovering misreported debt.

So far this year, Senegal has raised 590 billion CFA francs (1.06 billion US dollars) in five issuances, with notable allocations going to investors based in Togo and Senegal.