2023 BOND ISSUE : Afriland Stock Exchange Helps Cameroon raise 176.6 billion FCFA

Borrowing operation for the year 2022 is made possible by the participation of investors from the sub-region in the various tranches, but also and above all thanks to the stock exchange companies that have increased the underwriting to a sustained level. Afriland Bourse, subsidiary of Afriland First Bank dedicated to market operations, holds the largest investment in terms of underwriting.

This company has injected in the last moments, 6 billion FCFA additional bringing the total amount of the underwriting of the arrangers to 110 billion FCFA. This is the second time on this operation that the company headed by Pierre Kammogne makes an addition on its underwriting which is now fixed at 39 billion FCFA, i.e. 20.5 % of the amount collected. Since Cameroon’s loan is in multiple tranches, Afriland has essentially invested on the 6-year maturity tranche paid at 6.75 % According to the Minfi figures, investors have flocked to short maturity tranches.

Clearly, for the tranche with a maturity of 3 years, the amount requested was 40 billion, however the amount subscribed was 79 billion, i.e. a coverage rate of 198 %. Regarding the tranche with a maturity of 4 years, investors have served the country 61 billion out of 40 billion sought, i.e. a coverage rate of 154 %. The 6- and 8-year tranches have been subscribed to the tune of 50 and 20 billion respectively, for sought-after amounts of 25 and 10 billion.

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The Cameroonian Public Treasury confirms its intention to arrogate to itself the entire amount proposed by the investors. For this, the country has requested the authorization of the Central African Financial Market Surveillance Commission (Cosumaf) to arrogate the additional funds to itself.

According to the information documented on this operation, the State of Cameroon plans to allocate the sum of 85 billion FCFA to the realization of road works. These include ; the construction project of the Lolabé-Campo expressway, the asphalting of the Soa-Esse and Awae-Esse road, the construction works of the Yaoundé-Nsimalen motorway, the asphalting of the Ekondo Titi-Kumba-Mamfé road among others.

The urban development work is estimated at 15 billion FCFA, against 20.5 billion FCFA for energy infrastructure and pipe borne water supply. Among the eligible projects are the pipe borne water supply project for the city of Yaoundé from the Sanaga, the construction project for the 400 KV Nachtigal-Bafoussam transmission line and its related works, the strengthening and stabilization of the electricity transmission networks of the city of Yaoundé and Douala. In the same light, the government intends to allocate 15 billion FCFA for the reconstruction program for the Far North, North-West and South-West regions.

Concerning the loan settlement, Cameroon has opened an amortization account at the Central Bank which will be funded every 15th of the month peak period of tax revenues. This provision is made by automatic debit from the BEAC enough to provide a security for investors. At each maturity, the BEAC takes the amount to be paid from the amortization account and puts it at the disposal of bondholders via the approved intermediaries.

Sorelle Ninguem