Ivory Coast cancels €198 million bond
This bond was allegedly cancelled due to poor "market conditions".Ivory Coast has cancelled the issuance of a 12-year CFAF130 billion (€198.2 million) bond that was planned this month.
According to Koaci newspaper, the cancellation was due to bad "market conditions" and a lack of "investment plan".
The "market conditions" could refer to the US interest rate hike announced earlier this week, which is expected to reduce investors' appetite for the debt of emerging markets.
Newspaper Le Patriote adds that the cancellation is also due to an "improved state treasury", after Ivory Coast received a Chinese loan of CFAF488 billion to finance its electrical infrastructure.
The Ivorian government increased bond issuances in recent months. It issued a CFAF150 billion sukuk on the regional market of the West African Economic and Monetary Union (WAEMU) with a subscription period ending December 21st.
This is the first tranche of a loan that is expected to reach CFAF300 billion for the 2015-2020 period.
The country has also issued a CFAF50 billion bond on November 3rd, a CFAF150 billion bond on September 8th and has raised more than CFAF132 billion in May on the regional market.