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(Ecofin Agency) – Mali’s Treasury raised CFA8.13 billion (about $12.4 million) in a bond auction on Wednesday, August 21, 2024. The auction, managed by UMOA-Titres, attracted varied investor interest depending on the bond maturities.
This auction is part of Mali’s efforts to address budgetary pressures driven by a complex political and security situation, coupled with a challenging global economic environment. So far this year, the Malian Treasury has raised over CFA480 billion through the regional financial market.
The 308-day Treasury bills (BAT) were the most sought-after, drawing CFA8.23 billion in bids, covering 59.32% of the offering. The Treasury accepted CFA7.63 billion at a weighted average rate of 8.87%, resulting in a yield of 9.59%. This yield was higher than that of similar Ivorian Treasury bills—7.19% for 358 days and 6.61% for 91 days.
On the other hand, the 3-year Treasury bonds (OAT) saw less demand, with only CFA6.55 billion in bids. The Treasury accepted CFA452.1 million at a weighted average price of 91.27%, yielding 9.80%. For comparison, Burkina Faso’s 3-year and 5-year bonds offered yields of 9.43% and 8.59%, respectively.
Interestingly, only investors based in Mali submitted bids for the 308-day BAT and the 3-year OAT. However, the 5-year OAT attracted bids from investors in Benin and Burkina Faso.
This bond issuance comes in a regional economic context marked by uncertainty due to political and security challenges in the Sahel, as well as persistently high-interest rates globally. The mixed investor interest in Malian bonds likely reflects concerns about the country’s political and security situation.
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