Ivory Coast raises CFAF132 billion on the regional market
About 90 per cent came from Moroccan operators.Ivory Coast has raised over CFAF132 billion (€230 million) through its latest bond offering on the sub-regional market, although CFAF120 billion were initially sought, it was announced this week.
About 90 per cent came from Moroccan operators Actibourse, African Stock Exchange and Atlantic Finance (CFAF120 billion).
"It's a mixed result. The market has taken only 12 billion CFA francs because the coupon of 5.99 percent for a loan with a maturity of ten years was not attractive," said an analyst at the Regional Stock Exchange (BRVM), quoted by Jeune Afrique.
"It is clear that without the Moroccan operators backed by powerful banking groups, that loan would have turned into a fiasco," he added.
According to him, the enthusiasm of the Moroccan operators is due to excellent relations between Rabat and Abidjan, that the forthcoming visit of Mohamed VI in Ivory Coast is expected to strengthen. The funds raised by the loan will be used to finance the 2015 budget.
Ivory Coast has also just selected the ICD, a subsidiary of the Islamic Development Bank, to issue a CFAF300 billion Islamic bond.
The project will be implemented in two phases of CFAF150 billion each over the 2015-2020 period, and aims to finance development projects.