Guinea-Bissau: 23.100 billion FCFA in stimulus bonds raised on the UMOA financial market

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The State of Guinea-Bissau, through the General Directorate of the Treasury and Public Accounts, raised for the second time on April 13, 2021 on the financial market of the West African Monetary Union (WAMU) an amount of 23.100 billion FCFA (34.650 million euros) at the end of its issuance of 3 and 5-year Treasury stimulus bonds (ORD), organized in partnership with the UMOA-Titres Agency based in Dakar.

Guinea Bissau’s first ORD dates back to March 9, 2021, with an amount of CFAF 16.500 billion raised for the same maturities.

The issuance of ODRs which is launched by the UMOA-Titres agency in collaboration with the Central Bank of West African States (BCEAO), aims to allow the issuer to mobilize the savings of individuals and moral in order to ensure the coverage of the financing needs of the State budget as part of its economic recovery plans in order to contain the effects of the COVID-19 pandemic and to return to the performance before the health crisis . It targets not only socially responsible investors but also companies or individuals wishing to support the economic recovery actions initiated by the States of the West African Economic and Monetary Union (UEMOA) zone.

At the end of the auction, the UMOA-Titres agency identified 49.789 billion FCFA in global bids from investors, while the amount auctioned by the issuer was 21 billion FCFA. This gives a coverage rate of the amount put out to tender of 237.09%.

From the total amount proposed by the investors, the Public Treasury of Guinea-Bissau withheld 23.100 billion FCFA and rejected the remaining 26.689 billion FCFA, ie an absorption rate of 46.40%.

The repayment of the capital of the 3-year ODRs will be made on the first working day following the maturity date set on April 14, 2024. On the other hand, the payment of interest will be made at the end of the first year at a rate of 6, 10%.

Regarding the capital of ODRs with a 5-year maturity, it will also be reimbursed on the first working day following the due date of April 14, 2026 and the payment of interest from the end of the first year at a rate of 6.25%.

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