Investors strongly subscribed to the issue of 3-year Treasury-equivalent stimulus bonds (ORD) launched on June 17, 2021 on the West African Monetary Union (UMOA) financial market by the State of Benin, with a coverage rate of the amount put out to tender of 304.40%.
At the end of the auction, the UMOA-Titres agency identified 182.642 billion FCFA in aggregate bids from investors for an amount auctioned by the issuer of 60 billion FCFA. From the amount of these bids, the Beninese Public Treasury retained 66 billion FCFA and rejected the remaining 116.642 billion FCFA, ie an absorption rate of 36.14%.
ODR issues are initiated by the UMOA-Titres agency in collaboration with the Central Bank of West African States (BCEAO). They aim to allow the issuer to mobilize the savings of natural and legal persons in order to cover the financing needs of the Benin 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.
The repayment of the capital of the securities issued will take place on the first business day following the maturity date set on June 18, 2024. As for the payment of interest, it will be made annually on the basis of an interest rate of 5.20%. The weighted average yield was 4.96%. As for the weighted average price and the marginal price, they are respectively 1006 and 1005.