(Business in Cameroon) - The bond loan of 150 billion FCFA that Cameroon is set to launch in the next few days on the Douala Securities Exchange (DSX), will be hit with an annual interest rate of 5.5% in favour of subscribers, and will be paid back over 5 years. This was revealed by an inside source.
The interest rate is the lowest of the three fundraising efforts made by the State since 2010. For its first bond loan in December 2010 (200 billion FCFA), the State of Cameroon offered subscribers an interest rate of 5.6%, compared to 5.9% for the loan in December 2013 (50 billion FCFA).
By lowering the interest rate for its third launch on the capitals market, the Cameroonian government would appear to have understood the extent to which investors are eager for its Treasury bonds.
The figures speak for themselves. When the government only sought 50 billion FCFA for its loan in December 2013, investors offered up 80 billion FCFA. In 2010, for its debut fundraising effort of 200 billion FCFA, it raised 203 billion FCFA.
Arranged by CSB Cameroon, the subsidiary of the Moroccan bank, Attijariwafa, the fundraising campaign that Cameroon was initially preparing to launch was slated to take place in June 2014, but had to be postponed to October due to a lack of projects ready for financing.