(Business in Cameroon) - Electric utility Eneo announces that it has launched negotiations to raise XAF100 billion on the Cameroonian banking market. According to the recent newsletter published by the company, this fundraising operation was approved by the company’s administrative board in January 2020, but it was not launched until now because of some contingencies.
“We needed to reassure the financial market about Eneo’s capacity to meet payment deadlines and prove that the state of Cameroon can regularly pay its invoices (…) With the XAF45 billion we received [ed.note: in June 2020] and the regular payment of state’s invoices over the first five months of this financial year, negotiations for the XAF100 billion loan were effectively launched,” Eneo’s MD, Éric Mansuy, said in a recent interview with Business in Cameroon.
Official sources informed that the loan being sought by the company will be mainly used to refund a medium-term loan it contracted and fund investment projects in 2020 and 2021.
For 2020, the company initially set an operating and investment budget of XAF67 billion but, because of the coronavirus pandemic, it reduced it by XAF21.3 billion to XAF45.7 billion.
Brice R. Mbodiam