Mali: State raises CFAF 50 billion in stimulus bonds on the UMOA financial market

The State of Mali, through the National Directorate of the Treasury and Public Accounts, raised on August 4, 2021 on the financial market of the West African Monetary Union (UMOA) an amount of 50 billion FCFA (75 million d ‘euros) at the end of its issuance of treasury stimulus bonds (ODR) with maturities of 3 and 10 years.

ODR issues are initiated by the UMOA-Titres agency in collaboration with the Central Bank of West African States (BCEAO). They aim to enable the issuer to mobilize the savings of natural and legal persons in order to cover the financing needs of the Malian State budget as part of its economic recovery plans in order to contain the effects of the COVID-19 pandemic and reconnect with pre-health crisis performance. They target 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.

After auction, 159.181 billion FCFA of global bids from investors were identified by the UMOA-Titles Agency out of an amount put out to tender by the issuer of 50 billion FCFA. This gives a coverage rate of the amount put out to tender of 318.36%.

From the amount of the bids, the Malian Public Treasury retained 50 billion FCFA and rejected the remaining 109.181 billion FCFA, ie an absorption rate of 31.41%.

The repayment of the capital of the securities issued will take place on the first business day following the maturity date set on August 5, 2024 for 3-year ODRs and on August 5, 2031 for 10-year ODRs.

As for the payment of interest, it will be made annually on the basis of an interest rate of 5.60% for 3-year ODRs and 6.25% for 10-year ODRs.

The weighted average yield is 4.95% for 3-year ODRs and 6.18% for 10-year ODRs.


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