EcoMatin points out that the bond dubbed operation “EOG 6.25% Net 2023-2028” aims at making public offering for an amount of 150 billion FCFA from the State of Gabon. The Emerald Securities Services presented the documents relatively to the bond request on May 19, during which the stock exchange company chosen to pilot the operation, the financial market regulator of the CEMAC equally validated the launch of said operation, on June 15, until August 31, 2023. “The Gabonese State is authorized to carry out a bond borrowing operation by public offering for an amount of one hundred and fifty billion (150,000,000,000) FCFA,” reads the decision made public by COSUMAF. However, this period can be modified if necessary.
In total, 15 million bonds will be issued at a unit price of 10,000 F. According to the decision of Cosumaf, these bonds backed by the remuneration rate of 6.25%, have a maturity of 05 years with a delay of 1 year. In other words, the repayment will only take place from the 2nd year, while the interest is paid annually from the first anniversary date of issue of the security.
As for all market operations, the securities will be dematerialized, registered in an account with the Central Depository of the Bvmac and kept in the books of the stock exchange companies, account holders approved by Cosumaf. The reimbursement mechanism is guaranteed by the BEAC via the office debit. In detail, an escrow account called “Escrow account-Amortization of the Gabonese Government Bond EOG 6.25% Net 2023-2028” will be opened in the books of the BEAC. Each month, it will automatically debit an amount from the Treasury account which it will transfer to the amortization account. At each repayment deadline, it will debit the amortization account to credit the account(s) of investors who will subscribe to the fundraising.
Despite the restrictive monetary policy put in place by the Central Bank to restrict access to finance to fight inflation, the capital market has become a real support for the Gabonese economy.
The envelope requested by Gabon will be used to clear the moratoriums in the portfolio of the General Directorate of Debt (DGD) and to finance priority projects of the Transformation Acceleration Plan (PAT) of Gabon. This operation comes some time after the success in November 2022, of a similar issue of 175 billion on the CEMAC money market. Gabonese state succeeded for the 2nd consecutive year in raising funds, thanks to Cameroonian merchant banks who participated more.