The Emerging Africa Infrastructure Fund (EAIF) has invested XOF 8.3bn ($15m) in a local currency capital market bond issue by Senegal’s Port Autonome de Dakar (PAD), the owner of the Port of Dakar.

The bond, which was issued on the regional UEMOA stock exchange, raised over XOF60bn ($107m).

The 7-year bonds will have a coupon rate of 6.60%.

The issue marks the start of the process of relocating the capital city’s port and its operations to a new greenfield site.

The proceeds of the PAD bond will help fund phases one, two and three of the move of the port of Dakar from the centre of the city to a deep water port location 35 km by sea and 70 km by road from the existing site.

The port will be part of the new special economic zone that includes Dakar’s international airport.

New and upgraded road and rail links will connect the port and airport to Dakar and into the regional transport network.

Roland Janssens, Director at EAIF’s managers, Ninety One, said: “Supporting enterprise zones around major ports is a core strategic economic development objective of PIDG and EAIF. So too is contributing towards strengthening local capital markets. Port Autonome de Dakar is to be congratulated on its vision and ambition. The new port will help make Senegal a more competitive international economy and have benefits for the whole of West Africa.”

Invictus Capital & Finance was lead arranger of the bond issue.

El Hadji Mbacké Fall, CEO of Invictus Capital & Finance, said: "As a regional specialist in capital markets, Invictus is proud it was able to use its expertise and local knowledge to help at the birth of such an important infrastructure development for Senegal and West Africa. The success of the issue is an encouraging sign of the attractiveness of Senegal to international investors.”

The project is forecast to have a 10 to 15 year construction period.

PAD have developed a “Green port” strategy that aims to minimise the port’s carbon footprint.

The plan includes a commitment to a large-scale tree-planting programme to help deforestation in other parts of the country.

Speaking for Port Autonome de Dakar, M Aboubacar Sedikh BEYE, Managing Director, said: “Creating a great new port to serve west African economies on a new site is one of the foundation stones of building a more successful, more prosperous and greener future for Senegal. It is of great benefit to Port Autonome de Dakar to have EAIF and PIDG supporting us in this venture. They bring deep expertise of financing African infrastructure and share with us a vision of long-term investment delivering a legacy of economic and social progress.”