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West Africa: COFINA records 16 billion CFA francs in subscriptions at the close of its first securitisation operation

13.06.2018

 | Source:  35° Nord; All Africa

COFINA, Africa’s leading institution for mesofinance, has raised more than 16 billion CFA francs, an oversubscription of 60% reflecting strong investor interest.

The money raised will be reinvested in the financing of small and medium-sized businesses in the region.

Abidjan, 7 June 2018 – Initiated 11 April 2018. The securitisation operation by Compagnie Financière Africaine (COFINA), Africa’s leading institution for mesofinance, was completed at the Bourse Régionale des Valeurs Mobilières (regional stock exchange), the common stock exchange of the eight countries in the West African Economic and Monetary Union (WAEMU) zone. This operation, the first in the region, involved a bond issue for an amount of 10 billion CFA francs.

This securitisation of receivables raised 16 billion CFA francs, an oversubscription of 60% reflecting strong investor interest. The registered funds come from countries all over the world. Burkina Faso, Mali, the Ivory Coast, Togo, Gabon and Morocco, but also Germany, the United States, the United Kingdom and Switzerland are among the main countries of residence of subscribers.

The operation was arranged by Africa Link Capital Structuration. It was carried out and completed by two management and intermediation companies, leaders in the Ivorian market: Hudson & Cie and NSIA Finance. With a maturity of 18 months, the securities (1 million in total) were issued at a price of 10,000 CFA francs CFA, with a face rate of 7.50% gross per year.

“The clear success of this operation is proof that investors see in COFINA, and in the mesofinance sector, a potential that is still under-exploited. Legal entities, made up mostly of insurance companies, represent 84% of subscribers, an indisputable sign that we have the confidence of our peers and partners. The money raised shall be reinvested in the real economy to help small and medium-sized businesses restructure themselves in our countries in the sub-region”, says Jean-Luc Konan, CEO of COFINA. Read more on All Africa.

Source: All Africa