(Business in Cameroon) - Last November 19, the financial markets commission (CMF), which regulates the Douala Stock Exchange (DSX), gave the green light to the local subsidiary of the leasing company Alios Finance to issue a bond aimed at mobilizing CFA8 billion, authorized sources said.
This fundraising operation, whose subscription period runs from November 28 to December 11 this year, has an interest rate of 5.75% per annum for a maturity of 5 years (2018-2023). The minimum subscription is CFA150,000.
Arranged by the Cameroonian subsidiary of the Gabonese banking group BGFI, this public offering is predicted to be a success, if we consider the recent enthusiasm shown by investors for the Cameroonian government's bond issue (2018-2023), which was oversubscribed by CFA54 billion.
In addition, Alios Finance Cameroon offers potential investors a more attractive annual interest rate (5.75%), compared to 5.6% for the Cameroonian government's last public offering, which was 90% mobilized by local investors, demonstrating the availability of liquidity on the market.
This availability of liquidity is confirmed in the latest BEAC monetary policy report, published last month, which reveals that the sluggishness of credit during the first half of the year as well as the repatriation of banks' external assets have increased bank over liquidity (banks generally finance 80% of public offerings) in the CEMAC zone, in which Cameroon holds 40% of the industrial fabric.
Nevertheless, experts say investment habits in Cameroon could have an impact on this fundraising operation, as local investors have more confidence in investing in state operations than in private ones. As proof, the public offering to raise the capital of the Douala Metropolitan Investment Company (SMID) in July 2018 was closed with an effective mobilization of only CFA5 billion (after extension of the subscription period), out of the CFA10 billion requested.
Let’s note that Alios Finance is a pan-African financial institution that offers SMEs and large companies financing solutions such as leasing, real estate finance, investment credit, hire-purchase and long-term vehicle rentals.
Brice R. Mbodiam