Mali: State raises CFAF 30 billion in stimulus bonds on the UMOA financial market

The State of Mali, through its National Directorate of the Treasury and Public Accounts, raised on August 25, 2021 on the financial market of the West African Monetary Union (UMOA) an amount of 30 billion FCFA (45 million ‘euros) at the end of its simultaneous issuance of 3 and 5 year treasury stimulus bonds (ODR)

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, 97.127 billion FCFA of global bids from investors were identified by the UMOA-Titles Agency out of the amount auctioned by the issuer of 30 billion FCFA. The coverage rate for the amount put out to tender is 223.76%.

From the amount of the bids, the Malian Public Treasury retained 30 billion FCFA and rejected the remaining 67.127 billion FCFA, ie an absorption rate of 30.89%.

The repayment of the capital of the securities issued will take place on the first business day following the maturity date set on August 26, 2024 for 3-year ODRs and on August 26, 2026 for 5-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 5.90% for 5-year ODRs.

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