A coverage rate of 66% … which denotes the immaturity of the market or the low appetite of investors for securities deemed yet safe because issued by the State and indexed to the dollar.
The Democratic Republic of Congo (DRC) launched, in October 2019, Treasury Bonds to diversify its sources of financing in order to meet its high public expenditure. This is how the Congolese government also began to issue indexed Treasury Bonds. Beyond the fact that they are issued and subscribed in Congolese francs, these securities are redeemed at maturity at their value indexed in US dollars, at the time of subscription.
In addition, the issues of indexed Treasury Bonds on Tuesday, August 16, 2022 enabled the DRC to raise 150 billion CDF (75 million USD) out of the targeted 225 billion CDF, i.e. a coverage rate of the amount put up for auction of 66.67%, informs a press release from the Ministry of Finance dated this Thursday, August 18, 2022. Two bidders have benefited from these financial securities which will be repayable with an interest rate of 10% per year and a maturity of 2 years. As a reminder, a Treasury Bond is a medium or long-term repayable debt security (duration greater than or equal to 3 years) issued by the Public Treasury of a State either by way of syndication (accessible via a group of financial institutions ) or by adjudication (auction).