(Business in Cameroon) - The Central African States Development Bank (BDEAC) is poised to open subscriptions for its inaugural 2024 bond issuance on March 4 at the Central African Securities Exchange (BVMAC) in Douala, Cameroon. Investors have until March 22, 2024, to contribute towards BDEAC's fundraising goal of CFA 50 billion in this phase of the operation.

This issuance is part of a broader initiative to accumulate CFA 100 billion on the regional market throughout 2024. Unlike its previous three bond issues, which collectively raised CFA 300 billion, this operation introduces a multi-tranche approach, a first for BDEAC and the third instance within the CEMAC zone following initiatives by the State of Cameroon and Alios Finance Cameroon in 2023.

Financial experts suggest that the multi-tranche strategy enhances the likelihood of success for capital seekers, particularly under the current CEMAC conditions. This situation is characterized by more stringent financing access due to the restrictive monetary policy the Bank of Central African States (BEAC) has enforced over the past two years.

Expanding the investor base

The multi-tranche approach not only provides issuers some control over interest rates but also broadens the potential investor base. It offers investors options for different maturities, allowing them to opt for longer maturities with higher interest rates or shorter ones with lower rates. BDEAC's new public saving initiative offers three interest rates: 4.7% for three-year securities, 5.95% for five-year securities, and 6.2% for seven-year securities.

"The funds raised will bolster our efforts in harnessing diversified resources, enabling continued support for projects across various sectors such as transportation, energy, industry, agribusiness, tourism, education, and health," stated the bank. It further noted that the bond issue had been "structured into three tranches to cater to the diverse investment needs of our subscribers."

BDEAC is charged with the development financing of the CEMAC member countries. Its mission is to promote the sustainable development and economic integration of Central African states by funding national, multinational, and economic integration projects. The bank also aims to assist states, sub-regional organizations, financial institutions, and economic operators in raising financial resources and funding projects, particularly those aimed at preserving ecosystems and combating climate change, as well as supporting feasibility studies for programs and projects.