Stimulus bonds: Burkina Faso raises 32.719 billion FCFA on the financial market of UMOA

The State of Burkina Faso, through its General Directorate of the Treasury and Public Accounts, raised on November 3, 2021 on the financial market of the West African Monetary Union (UMOA) an amount of 32.719 billion FCFA (49.078 million euros) at the end of its issuance of 3-year and 5-year Treasury stimulus bonds (ORD) organized in partnership with UMOA-Titres based in Dakar.
Launched by UMOA-Titres 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 individuals and legal entities in order to ” ensure the financing needs of the State budget of Burkina Faso 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 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, UMOA-Titres officials listed 86.432 billion FCFA out of an amount put up for auction of 30 billion FCFA. This gives a coverage rate of the amount put out to tender of 288.11%.

Of the total amount proposed by the investors, the Burkinabé Public Treasury retained 32.719 billion FCFA and rejected the remaining 53.713 billion FCFA, ie an absorption rate of 37.86%.

The securities issued will be redeemed on the first business day following the maturity date of November 4, 2024 for 3-year ODRs and November 4, 2026 for 5-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% for 3-year ODRs and 5.80% for 5-year ODRs.

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