The City of Dakar will issue bonds on the WAEMU market

Jan 29, 2015

The sum will help fund a shopping centre.

The City of Dakar is to raise CFAF20 billion (€30.5 million) on the financial market of the Economic and Monetary Union of West Africa (WAEMU) to finance the construction of a shopping centre.

This operation is expected to be launched in February, and is the first bond issued by a municipality in the WAEMU.

The agency Bloomfield Investment Corporation assigned a long-term rating of A to this loan and a short-term rating of A1, with a stable outlook for both.

These notes are based on the highly anticipated security measures, the credit quality of the City of Dakar and the credibility of the institutional guarantor, the agency said in a statement.

Half of the loan will be secured by US government agency USAID. The agency Bloomfield Investment Corporation also recently awarded a BBB + long-term rating and an A3 short-term rating to Dakar.

Two million shares with a nominal value of CFAF10 000 will be issued for this seven-year bond, with an annual interest rate of 6.6 per cent.ADNFCR-2976-ID-801772676-ADNFCR