(Business in Cameroon) – The Cameroonian subsidiaries of Societe Generale, Attijariwafa Bank (SCB Cameroun), and Ecobank, along with local bank Afriland First Bank, will lead a 200 billion CFA franc deal on the Bank of Central African States (BEAC) public securities market. The deal, struck between the State of Cameroon and African Export-Import Bank (Afreximbank), selected these four banks due to their leadership, according to sources familiar with the matter. All four are among the 22 credit institutions accredited by Cameroon as Treasury Securities Specialists (SVT) on the BEAC market.
A source close to the matter said Afreximbank required only Cameroon’s top SVTs to be involved in the transaction. The four banks form a quartet recognized by the Ministry of Finance earlier this year for their significant support of the Public Treasury’s fundraising operations in 2024. The source added that only final adjustments remain before closing the fundraising with Afreximbank, which could happen within hours.
Transaction Details
BEAC documents indicate the transaction involves issuing fungible Treasury bonds (OTA) with maturities of three, four, five, six, and seven years. The bonds carry interest rates of 6.5% for the three, four, and five-year maturities. Six-year bonds have a 7% interest rate, and seven-year maturities offer 7.5%. The Cameroonian Treasury aims to raise 40 billion CFA francs for each category, totaling 200 billion CFA francs.
The agreement between Cameroon and Afreximbank is structured as a swap. Afreximbank converted euros into 200 billion CFA francs at the BEAC. This allows the pan-African financial institution, which specializes in intra-African trade financing, to subscribe to the aforementioned OTA issuances by the Cameroonian government.
This operation marks Afreximbank as the first foreign financial institution to participate in the public securities market of CEMAC, which includes Cameroon, Congo, Gabon, Equatorial Guinea, Chad, and the Central African Republic. The initiative could boost the money market’s appeal, potentially attracting other foreign investors, especially as local players are approaching saturation due to high financing demand from CEMAC member states.
Written in French by Brice R. Mbodiam,
Translated and adapted into English by Mouka Mezonlin
