Gabon issues CFAF80 billion, 5-year bond
This new loan is part of the "Gabon Emergent" strategic plan (PSGE).The Gabonese government has launched a new five year bond issue of 80 billion CFA francs (€ 121.5 million) on the financial market of the CEMAC area.
The funds raised will be used to develop and rehabilitate urban roads in the city of Libreville.
This new loan is part of the "Gabon Emergent" strategic plan (PSGE), launched in 2010 by the government to diversify the economy, accelerate growth and turn Gabon into an emerging country by 2025.
"The rehabilitation and development of roads in the city of Libreville will, among other benefits, densify the traffic network in the Gabonese capital and help establish an urban transport system efficient and accessible to all," said Gabonese finance minister Marie-Julie Bilogo Bi-Nzendong, quoted by Dépêches de Brazzaville.
This is the country's fourth bond issue, following three loans successfully completed in 2007, 2013 and in May 2015.
This new bond comes as Fitch rating agency downgraded the sovereign rating of Gabon from "BB-" to "B +" in May, with a stable outlook. A revision mainly due to lower oil prices, weighing on the country's ability to diversify its economy.