The 2018-23 bond issuance by the Cameroonian government of CFA150 billion with a 5.6% interest rate on the Douala Stock Exchange successfully closed November 9 at two weeks of subscription, we learnt.
The fundraising operation was oversubscribed, just as the past four bond issuances, since the final amount exceeds CFA200 billion. Sources said the exact amount is CFA206 billion, thus CFA56 million more than the money expected.
This not only showed investors’ interest in Cameroonian securities but also the credibility of the country on this financial market. The success of this new public offering was all the more predictable given that even before the opening of subscriptions on 26 October 2018, the three operation arrangers and the underwriting syndicate had already guaranteed underwritings for CFA121.5 billion.
Sources at the ministry of finance suggest that given the current financial needs facing the country, the government could submit an over-allocation request to the financial markets commission (CMF), the regulator of the Douala Stock Exchange. This approach would enable the Treasury to benefit from all or part of the additional CFA56 billion.
Let’s recall that this public offering, according to the information note produced by the government and the arrangers, will make it possible to finance some 40 ongoing infrastructure projects in the country, mainly those related to the organization of the African Cup of Nations (AFCON) which Cameroon will host between June and July 2019.