(Business in Cameroon) - Financing firm Alios Finance Cameroon recently launched a bond issuance operation on the Central African Stock Exchange (BVMAC). Named “ALIOS 02 5.40% BRUT 2021 – 2025”, the operation is aimed at raising XAF10 billion backed by a 5.40% interest rate.
According to the briefing note published by the issuer of those bonds, subscribers can send in their orders from July 26 to August 6, 2021. The subscription's closing date can be later extended, the note adds.
Arranged by Attijari Securities Central Africa (ASCA), the operation will allow Alios Finance Cameroon to implement its development strategy.
"Alios Finance Cameroon intends to boost the competitiveness of its financing offer, improve its risk cost and the quality of its portfolio to consolidate its sectoral leadership. This strategy requires the mobilization of diversified, innovative, and appropriate refinancing mechanisms," the note indicates.
The key actions envisaged by the financing firm are to boost productivity by 5% yearly over 2021 and 2022 then to 10% yearly on average starting from 2023. Also, the firm is planning to stabilize its needs for additional financial resources to XAF15 billion yearly over the 2021-2025 period and improve the cost/income ratio to 54%, maximum, with a controlled risk cost.
Currently, with 35% of the market share, Allios Finance Cameroon is the leader of lease financing in Cameroon. Its main competitors are Société générale Cameroon (25%) and Afriland First Bank (18%).
Its first bond issuance baptized "ALIOS 01 5.75% 2018-2021" was 108% oversubscribed. During the operation arranged by Gabonese banking group BGFI, it raised XAF8 billion to fund its 2018-2022 strategic development plan. In 2020, the financial institution recorded a 7% year-over-year increase in its net banking income due namely to the good performance of its lease financing products that fetched an additional XAF1.31 billion year-over-year turnover. However, at the same time, its profit after tax was XAF714 million, down by 29% year-over-year, due mainly to the risk cost; which rose amid the coronavirus pandemic.