Benin issues a new bond debt
Benin has just issued 50 billion CFAF (€76.2 million) in bonds on the West African Economic and Monetary Union market.Benin has just issued 50 billion CFAF (€76.2 million) in bonds on the West African Economic and Monetary Union market.
A ceremony was held in Cotonou, hosted by the Benin President Boni Yayi, to mark the launch.
The country's Finance Minister Mathys Adidjath said he was confident in the success of this transaction "because of the solid economical basics in Benin that has got a public debt worth 20 percent of its GDP", Ecofin news agency reports.
With an interest rate of 6.5 percent per year, the bonds have a five-year maturity with one year differed. The bond dept is coordinated by the "Caisse béninoise autonome d’amortissement" and financial intermediaries.
The previous bond dept in Benin, made in 2006, generated €82.3 million.
African governments are using bonds issues to finance their national budgets and to establish a presence on international markets more and more.
According to an expert from JP Morgan quoted by Les Afriques newspaper, this trend is based on the improvement of the continent's macroeconomic solvency and credibility.