Mali: State repays FCFA 25.2 trillion in debt on April 20, 2021

The State of Mali will proceed, on April 20, 2021, to the payment of annual interest and the partial repayment of the capital of its bond loan called “State of Mali 6.50% 2017-2024” for an amount of 25,200 billion FCFA (37,800 million euros), announced the officials of the Regional Stock Exchange (BRVM) based in Abidjan.

Interest amounts to 5.200 billion FCFA and the capital to 20 billion FCFA.

By decree dated March 03, 2017, the Malian Minister of Economy and Finance had authorized for a period of 21 days, from March 23, 2017, the issue by the National Directorate of the Treasury and Public Accounting of Mali on the regional financial market of the West African Monetary Union (WAMU), fixed rate bonds for an indicative nominal amount of CFAF 100 billion.

Using this authorization, the Director General of the Treasury and Public Accounts proceeded to issue a bond loan with a nominal amount of CFAF 100 billion represented by 10,000,000 bonds of CFAF 10,000 each. . The distribution of these titles to the public took place from March 23 to April 14, 2017. At the end of this operation, 100 billion FCFA had been subscribed on the financial market of the UMOA.

Through this fundraising, the Malian authorities seek to mobilize resources in order to ensure the financing of part of the investments provided for in the national investment program for the year 2017.

The issuer had set an annual nominal rate of 6.50%. In other words, the bonds should earn an annual interest of 650 FCFA per security.

To ensure the repayment of the capital, the issuer had opted for annual amortization in equal series after two years of deferral, from the effective date set on April 20, 2017. The payment of interest was scheduled annually for April 20 of each year.

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