Petro Gabon issues 5th corporate bond at BVMAC

Aug 06, 2010

Petro Gabon floated a 7 billion CFA Francs 7-year bond on the Central Africa Stock Exchange (BVMAC) in July.

The issue price was set at par with a minimum denomination of 10 000 CFA Francs with a 6 percent coupon rate. Alexandre Gandou, president of the Central African Market Surveillance Commission (COSUMAF), said
that the BVMAC, based in Libreville, Gabon, represents "a tool for long-term finance which complements short- and medium-term financing tools which the banking sector offers." He added that the new issue points to the efficienct functioning of the BVMAC.

"BVMAC is no longer the sea serpent which everybody talks about without ever actually seeing it", said Gandou. He invited the companies in the region to issue bonds to finance their activities, but noted that many are not very familiar with this tool yet.

Petro Gabon is the 4th enterprise to float a bond on the regional stock exchange. As the second largest petroleum distributor in Gabon, it plans to use the funds raised to finance its expansion in the country.