Congo to raise 150 billion CFA francs on the regional market
This is the first time that the country will issue bonds on the CEMAC market.The government of the Republic of Congo is about to launch its first bond on the financial market of the Economic and Monetary Community of Central Africa (CEMAC), according to newspaper Jeune Afrique.
It will issue 150 billion CFA francs (€229 million) worth of bonds, with a maturity of five years. The subscription period will run from December 12 to 22nd, 2016.
The resources mobilized will be used to "finance the development projects included in the 2016 Budget and the partial clearance of domestic debt", according to the information document sent to investors.
This bond comes after Fitch and Moody's lowered the rating of the country down a notch this year, following a missing payment on its Eurobond launched at the end of 2007 - which, according to the authorities, was due to an administrative error.
Moody's warned that it could carry out a further deterioration of the country's rating if its investigations revealed that liquidity problems were deeper than what the government anticipated.
The decline in oil prices is hurting the country's public revenues. By the end of 2015, its external indebtedness was estimated at 34.7 per cent of GDP.