(Business in Cameroon) - On March 18, 2020, Cameroon was unable to raise the complete XAF10 billion it was seeking on the BEAC debt market via the issuance of 52-week fungible treasury bills.
According to the official results of the auction, investors only offered XAF8.5 billion and the government decided to keep XAF7.5 billion. The treasury did not explain why it decided to keep only that portion of the offers but the decision could have been spurred by the interest rates required.
During the operation, the interest rates required by investors ranged from 3.15% to 3.75%, averaging 3.41%. During its recent operations (26-week bills’ issuances notably) Cameroon seldom paid over 3% as an interest rate.
This is the second poor performance the country is recording on the market within a month. On February 12, 2020, it was unable to raise the full XAF20 billion it was seeking in the same market after issuing 26-week fungible treasury bills.