Togo: State collects first FCFA 22 billion stimulus bonds

The State of Togo, through its General Directorate of Treasury and Public Accounts, obtained on February 19, 2021 on the financial market of the West African Monetary Union (UMOA) an amount of 22 billion FCFA (33 million euros) at the end of its 5-year Treasury stimulus bond issue (ORD) organized in partnership with the UMOA-Titres Agency based in Dakar.

Launched by the UMOA-Titres agency in collaboration with the Central Bank of West African States (BCEAO), the issuance of ODRs aims to allow the issuer to mobilize the savings of individuals and legal entities with a view to ensuring the financing needs of the State budget of Togo are covered as part of its economic recovery plans in order to contain the effects of the COVID-19 pandemic and return to the performance before the health crisis . It mainly targets socially responsible investors but also companies or individuals wishing to support the economic recovery actions initiated by the States of the UEMOA zone.

After the auction, the UMOA-Titres agency listed 112.696 billion FCFA while the amount put up for auction was only 20 billion FCFA. This gives a coverage rate of the amount put out to tender of 563.48%. This demonstrates a massive support from socially responsible investors. Apart from Niger, the places of submissions come from all the WAEMU countries.

From the total amount proposed by the investors, the Togolese Public Treasury retained 22 billion FCFA and rejected the remaining 90.686 billion FCFA, ie an absorption rate of 19.52%. The winning bids come in order of importance from Benin (18 billion), Togo (2.500 billion), Senegal (1.250 billion) and Burkina (250 million).

The issuer has undertaken to repay the securities issued on the first working day following the due date set at February 22, 2026. As regards the payment of interest, it will be made at the end of the first year at a fixed interest rate of 6.10%.

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