The State of Senegal, through its General Directorate of Public Accounts and the Treasury raised on April 23, 2021 on the financial market of the West African Monetary Union (UMOA) an amount of 55 billion FCFA (82.500 million euros) at the end of its issuance of 5-year and 10-year Treasury stimulus bonds (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 natural and legal persons with a view to ensuring the financing needs of the State budget 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 and companies or individuals wishing to support the economic recovery actions initiated by the States of the UEMOA zone.
The issue was a real success since after auction, the agency UMOA-Titres identified 215.014 billion FCFA in global bids from investors while the amount auctioned by the issuer was only 50 billion FCFA. This gives a coverage rate of the amount put out to tender of 430.03%.
But, for cost reasons, the Senegalese Public Treasury decided to withhold 55 billion FCFA and reject the remaining 160.014 billion FCFA, ie an absorption rate of 25.58%. It should be noted that the choice of the issuer was very much oriented towards 10-year ODRs with CFAF 41.148 billion against only CFAF 13.851 billion for 5-year ODRs.
The issuer has undertaken to redeem the securities issued on the first working day following the maturity date set on April 26, 2026 for ODRs with a 5-year maturity and on April 26, 2031 for ODRs with a 10-year maturity.
Regarding the payment of interest, it will be made at the end of the first year at a fixed interest rate of 5.60% for 5-year ODRs and 6% for 10-year ODRs.