Burkina: The State raises 66 billion FCFA in stimulus bonds on the UMOA financial market

The State of Burkina Faso, through its General Directorate of the Treasury and Public Accounts, raised on April 28, 2021 on the financial market of the West African Monetary Union (UMOA) an amount of 66 billion FCFA (99 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.

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 Burkina Faso 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 pre-crisis performance sanitary. 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 UEMOA zone.

At the end of the auction, the UMOA-Titres agency listed 139.011 billion FCFA where the issuer only requested 60 billion FCFA. This gives a coverage rate of the amount put out to tender of 231.69%.

Of the total amount proposed by the investors, the Burkinabé Public Treasury retained 66 billion FCFA and rejected the remaining 73.011 billion FCFA, ie an absorption rate of 47.48%.

The securities issued will be redeemed on the first business day following the maturity date set on April 29, 2024 for 3-year ODRs. Regarding the payment of interest, it will be made at the end of the first year at a fixed interest rate of 5.55%.

As for ODRs with a 5-year maturity, their repayment will also take place on the first working day following the due date fixed on April 29, 2026. The payment of interest will be made at the end of the first year at a fixed interest rate. by 5.80%.

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