(Business in Cameroon) - On February 26, 2021, the Cameroonian public Treasury completed its first bond issuance operation planned for the 2021 financial year on the CEMAC public securities market. According to the official release published by the central bank BEAC, while the country was sourcing XAF50 billion, through the issuance of 5-year bonds, investors offered up to XAF72.3 billion.  

The country nevertheless chose to keep only the XAF50 billion it sought. Such oversubscription to Cameroon’s bond issuance despite the competition from Congolese and Gabonese securities can be explained by the quality of the signature of Cameroon, which has not defaulted on its commitments since the launch of the securities market in 2011. It can also be due to the 5.5% interest rate, which is above the usual rate on traditional savings in the country.

Cameroon is thus starting its H1-2021 bond issuance program (aimed at raising XAF225 billion) on a good footing. In the framework of that program, two new operations are planned for March 2021.

The first one will be carried out on March 10. It involves the issuance of 7-year bonds backed by a 6% interest rate to raise XAF35 billion. The Second bond issuance operation is aimed at raising XAF40 billion, through the issuance of 5-year bonds backed by a 5.5% interest rate.

BRM