(Business in Cameroon) - Cameroon made Wednesday the repayment of a loan of CFA83 billion on the Beac public securities market. The loan was contracted 26 weeks ago.

To make this repayment, the Treasury carried out a new issue of 26-week Treasury bills (BTA) on 11 July 2022, according to the dashboard of market operations published by the Beac, for the week of July 11 to 15, 2022. The new fundraising was carried out through domestic syndication, which is a mechanism validated by the central bank in 2021. It consists of a government issuing public securities through a group of primary dealers (SVTs) constituted as a syndicate and headed by a lead manager.

Unlike auctions, in addition to reducing the number of participants to a select group of primary dealers and making it possible to raise larger amounts, domestic syndication has the particularity of guaranteeing the success of the operation even before it is launched. This is because the issuer and the selected SVTs negotiate and agree in advance on all the terms of the loan (interest rate, amount to be raised by each SVT, maturity of the securities, etc.). 

BRM