Senegal, a cash-strapped nation recently approved for a $2.2 billion IMF bailout, has been included in JPMorgan Chase & Co.'s new frontier-markets bond index. Africa will account for nearly 45% of the Government Bond Index–Emerging Markets Edge, with Egypt and Morocco representing the largest contributions by weight. Other African issuers on the index include Nigeria, Kenya, Uganda, and Ivory Coast. Senegal's weight in the index is 0.34%, compared to 8% for Egypt and Morocco. The West African nation is the continent's most distressed issuer, with a sovereign risk premium trading at 1,639 basis points over US Treasuries. Since being locked out of global capital markets in 2024 after the discovery of hidden debt, Senegal has relied on regional markets for financing through local currency auctions. Its plan to ring-fence local currency debt has encouraged investor support. The most recent debt auction held Sept. 11 raised $179 million. JPMorgan said it will include two local currency instruments from Senegal valued at $654 million in the index. The index will track around $328 billion in debt across 425 instruments, spanning 26 markets and 24 currencies.

Senegal intends to exclude local currency borrowing from its debt treatment announced on Sept. 1, when it reached a staff-level agreement for a three-year facility with the IMF. It has since made an official request for the revamp to be done under the Group of 20's Common Framework. JPMorgan analysts noted the index is less about finding the next high yielder and more about defining the Frontier beta.