Guinea-Bissau: FCFA 22 billion in stimulus bonds raised on the UMOA financial market

The State of Guinea-Bissau, through the General Directorate of the Treasury and Public Accounts, has, for the third time, raised on May 4, 2021 on the financial market of the West African Monetary Union (WAMU) an amount of 22 billion FCFA (33 million euros) at the end of its issuance of 5 and 7-year Treasury stimulus bonds (ORD), organized in partnership with the UMOA-Titres Agency based in Dakar.

In total, the Bissau-Guinean authorities have raised 61.6 billion FCFA since March 9, 2021. The issue of ODRs which is launched by the UMOA-Titres agency in collaboration with the Central Bank of African States West (BCEAO), aims to allow the issuer to mobilize the savings of natural and legal persons in order to cover 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 return to 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 36.344 billion FCFA in global bids from investors, while the amount auctioned by the issuer was 20 billion FCFA. This gives a coverage rate of the amount put out to tender of 181.72%. Of the total amount proposed by the investors, the Bissau-Guinean Public Treasury retained 22 billion FCFA and rejected the remaining 14.344 billion FCFA, ie an absorption rate of 60.53%. The repayment of the capital of the 5-year ODRs will be made on the first working day following the maturity date set on May 5, 2026. 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 7-year ODRs, it will also be repaid on the first working day following the maturity date set on May 5, 2028 and the payment of interest from the end of the first year at a rate of 6.40%.

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