Speaking to fellow MPs, the chairman of the ECOFIN commission noted that discussions with the government concerned several aspects of this international loan, including its amount, interest rates, fundraising mechanisms, their traceability in the state budget, as well as the list of projects that should receive financing. «Your commission and the government had a frank and serious exchange of views on Eurobonds, in particular, on the volume of this loan, interest rates, attraction and traceability of these resources in the state budget, as well as an exhaustive list of projects funded by this extraordinary resource», said Guy Mafuta Kabongo.
According to the chairman of the ECOFIN commission, the government assured the people's deputies that the funds received from this loan will not be used to cover current government expenses, but will be used exclusively for investments with high economic impact. «The government has assured that these resources are not intended to finance current expenses, but for structural investments that can support economic growth, strengthen national connectivity, improve access to electricity, and develop human capital», he continued.
Guy Mafuta Kabongo clarified that the first tranche of $650 million will be used, in particular, to finance the modernization and expansion of the Ndjili International Airport, the rehabilitation and modernization of National Highway No. 4 on the Kisangani-Bafwasende section, as well as the construction of Luano Airport, which will receive an initial allocation of $20 million with a total estimated The project cost is $200 million.
The Chairman of the ECOFIN commission also indicated that this first tranche will finance the construction of a 31 kilometer-long toll bypass road around Kinshasa, the development of a 330 kV power transmission network towards Zambia, as well as the construction of the Katende hydroelectric power plant in Central Kasai province with a capacity of 64 megawatts (the first stage is 16 megawatts) along with related power lines.
In April of this year, the Democratic Republic of the Congo (DRC) took an important step in its economic history by successfully issuing its very first Eurobond. This operation marked the country's entry into the international capital markets and strengthened its credibility among investors. According to the Government, this $1.25 billion loan is an important turning point in the country's financing strategy. The issue, structured in two tranches with maturities of five and ten years and yields of 8.75% and 9.00%, respectively, aroused great interest in the markets. The application book has exceeded $5.3 billion, which means demand is more than four times the amount originally requested. This result demonstrates the restoration of international investors' confidence in the Congolese economy.
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