(Business in Cameroon) – The first trading session for the “BDEAC (6.20%, 5.95%, 4.70%) Net 2024-2031” multiple-tranche bond issued by the Central African States Development Bank (BDEAC) is scheduled for tomorrow August 7, 2024, at the Central African Stock Exchange (Bvmac) in Douala. “The listing procedure chosen for this initial trading day is the open price offer with a reference price set at 100% of the nominal value, which is CFA10,000,” Bvmac said in an August 1 statement.
According to Louis Banga Ntolo, Bvmac’s General Manager, a total of 5,476,971 bonds were subscribed. He explained that the principal will be repaid upon maturity. For investors who subscribed at an interest rate of 6.2% for seven-year maturity bonds, the capital will be amortized in fifths (1/5) annually after a two-year grace period. For those who subscribed at 5.95% for five-year maturity bonds, the capital will be amortized in thirds (1/3) annually after a two-year grace period. Finally, for bonds with a three-year maturity subscribed at 4.7%, the capital will be fully amortized after a two-year grace period.
Launched from March 4 to March 22, 2024, with an initial amount of CFA50 billion, BDEAC’s 2024-2031 bond issue was ultimately oversubscribed, reaching CFA54.7 billion following a one-month subscription extension approved by the Central African Financial Market Supervisory Commission (Cosumaf), the regulator of the Cemac financial market (Cameroon, Congo, Gabon, Chad, CAR, Equatorial Guinea).
This was the first multiple-tranche bond issued by BDEAC and the third in the Cemac region, following similar issuances by the State of Cameroon and Alios Finance Cameroon in 2023. According to the sub-regional financial institution, this successful operation is expected to be followed by a new CFA50 billion bond issuance later in the year. This will help complete the CFA100 billion envelope of bond issues on the sub-regional financial market approved by the bank’s Board of Directors for FY2024.
BDEAC stated that the funds raised will support the implementation of its “Azobe Strategic Plan 2023-2027,” which aims to intensify BDEAC’s interventions in financing development projects within the Cemac zone. This plan requires a total mobilization of CFA1,895 billion.
