New agency to support WAEMU states' bond issuance
This structure will facilitate the issuance of Treasury bills in West Africa.The Central Bank of West African States (BCEAO) has received approval from the Council of Ministers of the UEMOA region to create a regional agency to support States with the issuance and management of public debt securities within the union.
The agency 'UMOA-Titres' will coordinate and structure bond issuance programs, will organise capacity building seminars for key players of the regional financial market and will promote government securities to investors.
It will also manage bond operations on the regional market and will monitor their outcome, reports Lejecos, quoting official sources.
Although many analysts have for months predicted a decline in the popularity for African bonds, investors still show a strong appetite for them.
Kenya has successfully issued a $2 billion eurobond, and countries such as Nigeria, Senegal, Rwanda, Ghana and Zambia have all raised funds through treasury bills in the last 18 months.
David Makoni, head of Africa credit at Stanlib Asset Management, told African Business : "The reason why you haven’t seen the level of issuance petering out is that there are positive fundamentals at play, driving that both on the supply side and the demand side."
He added that stronger macroeconomic management, more stable politics, structural reform and improvements in the domestic business environment have percolated into markets' consciousness.