(Business in Cameroon) - On March 24, Cameroon issued new 5-year bonds on the Bank of Central African States (BEAC)’ s public security market. Although the results of the operation are not yet officially available, an authorized source informs that Cameroon raised XAF41 billion out of the planned XAF50 billion.
The source adds that the country rejected 15% of the offers because of their unattractive interest rates. This means that the country remained faithful to its conservative interest rate policy thanks to which it is currently the African country to obtain the cheapest loans on local financial markets in Subsaharan Africa.
"Cameroon is currently the only sub-Saharan country which is still getting short-term financing with interest rates below 3% and less than 7% for long-term financing,” Sylvester Moh (Director General of the Treasury) recently said.
The XAF41 billion raised included, the volume of funds raised by Cameroon via bond issuance on the BEAC public securities market in Q1-2021 is XAF126 billion. The volume is up by XAF1 billion compared with the initial forecasts. In Q2-2021, the country plans to raise XAF100 billion via the issuance of that same type of security. Officially, the funds raised are used for infrastructure projects in the country.