2021 BOND ISSUE : Alios Finance Cameroon Plans to Repay 660 Million FCFA

On May 11, holders of the « Alios 02 5.40% Gross 2021-2025 » bond will visit brokerage firms to retrieve the funds invested in this security issued by Alios Finance Cameroon, the leading leasing company in the country. The repayment will be based on a gross coupon of 772.15 FCFA per bond.

Alios Finance Cameroon (AFC) will make a payment of 659.6 million FCFA on May 10, 2024, to the subscribers of this bond. Out of this amount, 610.1 million FCFA will be allocated to the principal repayment, while 49.4 million FCFA will be used for the payment of generated interest. Each bondholder will receive a net coupon of 772.15 FCFA, which includes 714.29 FCFA for principal repayment and 57.86 FCFA for interest. Cash collection operations will begin on May 11, 2024, at the brokerage firms’ counters.

This is the 11th repayment installment of this bond, which will continue until 2025. The last installment in November 2023 allowed for the repayment of 675 million FCFA, of which 610.1 million FCFA was for the principal repayment and 65.8 million FCFA for generated interest. The 2021-2025 bond, arranged by Attijari Securities Central Africa (Asca), enabled AFC to raise 8.5 billion FCFA out of the requested 10 billion FCFA on the regional financial market.

In January of this year, AFC successfully conducted its first operation on the Central Bank of Central African States’ negotiable debt securities (TCN) market. The operation aimed to raise 2.5 billion FCFA, and AFC managed to obtain the full amount of funds expected. This program for issuing negotiable medium-term notes (Bmtn) aims to raise 5 billion FCFA with a 6.35% interest rate over 5 years. It is part of AFC’s financing plan for the development of its credit and leasing activities for its clients’ equipment and operational materials. AFC thus becomes the second licensed financial institution for this type of issuance in CEMAC, following Afriland First Bank, which inaugurated this segment in March 2023 with a mobilization of 20 billion FCFA over 7 years.

As part of its strategy to divest from certain subsidiaries in Sub-Saharan Africa, including Cameroon, Tunisie Leasing et Factoring (Tlef), the parent company of the Alios Finance group, signed a divestment agreement with Crédit D’Afrique Groupe in November 2023. This divestment will allow AFC to focus on its core activities. With a share capital of 2.4 billion FCFA, AFC currently holds a 35% market share in the leasing sector in Cameroon, thereby reinforcing its position as a leader.

Sorelle Ninguem