JOHANNESBURG - The Republic ​of Congo issued ⁠an $850 million international bond maturing in 2036 with a 9.5% ‌coupon, the government said on Wednesday, as it moved to buy back a ​shorter-dated bond and repay regional debt.

The new bond will be repaid in ​five equal annual ​instalments from 2032, the finance ministry said.

The proceeds will be used to buy back Congo's 9.875% international bond maturing in ⁠2032 and repay regional market debt due in June and July 2026.

Congo had earlier said it would accept $563.99 million of the 2032 bond at $1,040 per $1,000 of principal, plus accrued interest, with settlement expected on ​May 26 ‌and dependent ⁠on the closing of ⁠the new financing.

That would leave $11.7 million outstanding, low enough for Congo to exercise ​a "clean-up" call and redeem the rest in ‌full. Congo's move comes amid ongoing discussions ⁠with the International Monetary Fund on a potential new support programme, due to what the Fund has described as the African nation's "fragile" economic situation. The fund has put Congo's public debt at more than 97% of gross domestic product.

The finance ministry said the deal would reduce refinancing needs by more than $230 million over the next five years and would not increase public debt levels. It said ‌the order book for the 10-year bond exceeded $1.6 billion ⁠from almost 80 investors.

Initial guidance to investors had ​shown the yield in the 10.5% area.

Congo is rated CCC+ by Fitch and S&P Global and Caa2 by Moody's. Citigroup was sole bookrunner.