2022 BOND ISSUE : Cameroon issues 24,000 securities on sales
According to the official listing bulletin of August 11, 2023, the trading session closed with non-concluded investment offers on the bond compartment. In particular, 23,628 securities of the Cameroon bond, called “Ecmr 6.25% NET 2022-2029”, have been placed for sale on the secondary market.
In need of cash, the holders of these bonds have set the price of a security at 96%, i.e. 9,600 FCFA, the initial value being 10,000 FCFA. As a result, we note a discount of 400 FCFA per unit and once the securities have been purchased, the new buyers, in addition to the interest paid annually, will receive a small capital gain on the repayment of the principal of the loan.
Indeed, it is difficult to project the success of this operation due to the illiquidity of securities faced by the common financial market of the six Central African countries (Cameroon, Congo, Gabon, CAR, Chad, Equatorial Guinea). A security is said to be illiquid when market conditions do not allow it to be bought and sold quickly.
To reverse the trend, the Managing Director of the Bvmac validated on January 28, 2022, a notice obliging issuers of securities to sign a liquidity contract with their stock exchange company. Specifically, issuers requesting admission of their securities to the coast must make available to a stock exchange company with which they have signed said contracts, a financial envelope and securities using as a basis, the volume of the loan subscribed by the natural persons investing. This contract should be accompanied by a rate of 2 % (for the cash amount raised) and 0.5 % (for the issued securities) made available to the company so that it ensures the animation of the security.
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Therefore, the financial intermediary is required to intervene on the Bvmac platform by « offering for sale or purchase and / or both, the security concerned as soon as it notes that over a period of one week from Monday to Friday, there has been no exchange under the normal activity of the stock market on this security for which it provides the animation contractually » can be read on the notice N°002/2022.
To date, several offers remain in notebooks in the books of the stock companies, in particular 787,391 bonds of the loan ‘‘Bdeac 5.45% NET 2020-2027” at a unit price of 99.99 and a running coupon of 340.44 FCFA ; 34,981 bonds of the loan “Bdeac 5.6 % NET 2021-2028” at a unit price of 100 % and a running coupon of 385.1 FCFA ; 2 bonds of the loan “Bdeac 6 % NET 2022-2029’’, at a unit price of 100 % and a running coupon of 376.44 FCFA.
Sorelle Ninguem
