(Business in Cameroon) – Cameroon’s Treasury has issued a new round of bonds, seeking to raise CFA15 billion on April 28, 2025, through the Bank of Central African States (BEAC). The bonds have a maturity of 52 weeks, and the government hopes the funds will address its cash flow needs.
This move comes just a week after the country successfully raised CFA25 billion in two separate bond issues, despite a notable increase in interest rates. The results of the latest bond issue are still pending, but the recent uptick in rates has added a new layer of complexity to Cameroon’s borrowing strategy.
The government’s interest rates on the April 21 bond issues were higher than expected, with rates of 6.34% and 6.83%. These figures are a far cry from the average 3% rate the country offered in similar bond issues before early 2022. This increase is partly due to tougher market conditions as some Central African countries have been willing to offer more attractive returns to attract investors.
As a result, Cameroon, which was once known for offering lower interest rates compared to its regional peers, has had to adjust its approach, raising rates to draw in the necessary investment. This strategy aims to help the country navigate the increasingly competitive and expensive borrowing environment.
BRM
