(Business in Cameroon) - Today April 28, Cameroon is issuing new 5-year bonds to raise XAF20 to 30 billion, according to a release from the Ministry of Finance. The bonds, issued on the BEAC public securities market, are backed by a 5.5% interest rate.
The April 28, 2021, operation is the first of a series of three, through which the government intends to raise XAF100 billion on the said market in Q2-2021. In Q1-2021, the country raised XAF126 billion on the BEAC’s public securities market, XAF1 billion higher than the initial plan. According to public authorities, the funds are used for investment projects in the country.
In 2019, Cameroon repositioned its long-term funds' sourcing operations on the BEAC market, after a test of the financial market whose costs it found out were high. This decision is now beneficial for the country, which is nowadays the country that gets the cheapest loans in public securities markets in the sub-Sharan African region.
"Cameroon is currently the only sub-Saharan country which is still getting short-term financing with interest rates below 3% and less than 7% for long-term financing,” Sylvester Moh (Director General of the Treasury) usually reminds.