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Yaoundé - 16 January 2019 -
Finance

CFA150bn bond issue: Cameroon secures CFA121.5bn from nine local financing institutions

CFA150bn bond issue: Cameroon secures CFA121.5bn from nine local financing institutions
  • Comments   -   Friday, 26 October 2018 13:43

(Business in Cameroon) - Nine local banks and financial institutions have guaranteed CFA121.5 billion of the CFA150 billion bond which Cameroon is to issue on the Douala Stock Exchange, as to ensure a successful fundraising operation.

This followed a roadshow launched yesterday October 25 in Yaoundé, which continues today in Douala. The bond is to be subscribed from next October 29 to November 9.

The nine institutions include the three arrangers of the transaction (Société Générale Cameroun, Afriland First Bank and EDC Investment) and the underwriting syndicate group made of BICEC, Ecobank, UBA, BGFI, SCB Cameroun and Financia Capital. Thanks to the underwriting of these nine financial institutions, the amount sought now is only CFA28.5 billion.

However, the institutions said, part of these underwritings could be placed with the general public if, individuals and companies show interest in subscribing to this public offering by the Cameroonian government; for which an over-allotment is not excluded, in the event of oversubscription.

This new Cameroonian government's bond issue, the 5th since 2010, is intended to finance some 40 ongoing projects in the country's ten regions. Annual interest rate is 5.6% throughout the maturity period (2018-2023).

The bond costs CFA10,000, and the minimum to subscribe is CFA300,000, or 30 bonds. Called “ECMR 5.6% net 2018-2023”, this bond will then be listed on the DSX, as part of the secondary market, in order to allow securities exchanges between investors.

Brice R. Mbodiam

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