Burkina Faso: Investor craze for vouchers issued by the public treasury

Investors in the financial market of the West African Monetary Union (WAMU) have shown a real craze for good equivalent of the Treasury (BAT) to 12 months issued August 21, 2019 by the General Directorate of Treasury and Public Accounting of Burkina Faso in partnership with the UMOA-Titres Agency.

At the end of the auction, the UMOA-Titres agency has registered 70.994 billion FCFA (or 106.491 million euros) of global investor bids while the issuer only requested 20 billion FCFA ( 30 million euros). The rate of coverage of the amount tendered by the bids was 354.97%.

Finally, the General Directorate of Treasury and Public Accounts of Burkina Faso has retained 22 billion FCFA (33 million euros) and rejected the remaining 48.994 billion FCFA, an absorption rate of 30.99%.

The weighted average rate is 5.16% and the marginal rate is 5.25%. For its part, the weighted average yield is 5.45%.

Securities issued are redeemable on the first business day following the deadline of August 19, 2020. However, interest is payable in advance and pre-discounted on the nominal value of the warrants, which is one million CFA francs.

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