Adds details on new bond issuance, context about IMF throughout

By Colleen Goko

JOHANNESBURG, May 12 (Reuters) - The Republic of Congo announced a plan on Tuesday to buy back just over $575 million of its bonds due in 2032, aiming to cut its borrowing costs amid an ongoing effort to secure a new International Monetary Fund support programme.

The government is offering a premium payment of $1,040 for every $1,000 of the bond's principal, plus accrued interest. The bonds were issued in 2022 with a 9.875% interest rate and later reopened in December 2025.

The plan is set to be funded by the issuance of new dollar-denominated debt that is expected to have an eight-year weighted average life. Pricing and final terms would be set after the buyback offer expires on May 19.

If the buyback leaves less than 25% of the 2032 bonds outstanding, the government intends to redeem the remainder at 100% of principal plus accrued interest, it added.

Settlement is expected around May 26 or later, depending on the timing of the new bond sale.

Congo's move comes amid ongoing discussions with the IMF on a potential new support programme.

The IMF recently described the African nation's economic outlook as "fragile" due to limited investment and energy supply issues. IMF staff are expected to visit the country soon to discuss its economic reform plans.

Citigroup is acting as dealer manager for the tender and is sole bookrunner for the planned new issuance.

The Republic is rated CCC+ by both S&P and Fitch but a one notch lower equivalent of Caa2 by Moody's. All three agencies have "stable" outlooks on their ratings.