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(Ecofin Agency) – As market conditions are improving, WAEMU countries are getting more confident in their abilities to raise funds on the regional public securities market.
Between June 19 and June 23, WAEMU countries organized five bond issues to raise CFAF188 billion. In the end, they raised CFAF202.27 billion ($335.8 million).
In detail, Guinea-Bissau carried out a specific repurchase and new issue operation totaling CFAF18.40 billion. Côte d’Ivoire raised CFAF55 billion, Burkina Faso CFAF30.5 billion, Niger CFAF44 billion and Senegal CFAF54.37 billion.
Unlike the previous week, five tenors were used to raise these funds. They included short maturities of 91 days, 182 days, and 364 days, as well as medium maturities of 3 years and 5 years. The average subscription ratio was down slightly to 122.92%, compared with 123.54% the previous week. However, this is a far cry from the gloomy trends of the 1st half of the year, a sign of good issuance momentum and growing investor appetite for sovereign bonds.
Guinea-Bissau announced an CFAF18 billion refinancing operation with 364-days and 3-year securities. The issue was 102.22% subscribed, with six EU investors participating and strong interest from non-resident investors.
Côte d’Ivoire’s announced CFAF50 billion bond issue spread over securities with three tenors – 91 days, 364 days and 3 years – caught the attention of the financial community. This operation attracted the interest of 13 investors, reaching a 140.63% subscription rate. Local financial players were particularly involved, with a strong presence of Abidjan-based investors.
Burkina Faso’s operation was to raise CFAF30 billion, spread over three tenors : 364 days, 3 years, and 5 years. This operation was 105.01% subscribed thanks to the support of 10 Union players.
Niger also issued securities with three tenors (182 days, 364 days, and 3 years) to raise CFAF40 billion. Its expectations were exceeded with a 147.52% subscription, thanks to the participation of 16 investors from the Union. The involvement of non-resident investors was particularly noteworthy. Senegal was looking to raise CFAF50 billion with three tenor securities:364 days, 3 years, and 5 years. This issue was 119.2% subscribed with participation from 17 EU investors.
Overall, the week’s issues were carried out in a favorable market context for EU countries.
Fiacre E. Kakpo
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