Three CEMAC states issue bonds
Cameroon, Gabon and Equatorial Guinea have issued between 20 and 22 billion CFA francs.Three member states of the CEMAC - Cameroon, Gabon and Equatorial Guinea - have issued on July 20th three bonds worth a total of between 20 and 22 billion CFA francs (€30.5m and €33.5m) on the regional market, the Bank of Central African States (BEAC) has announced.
Cameroon is looking to raise seven billion CFA francs and Gabon, five billion CFA francs, while Equatorial Guinea is seeking 10 billion CFA francs.
With the decrease in oil revenues, CEMAC states see the regional financial market as a mean to balance their budgets.
This marks Equatorial Guinea's first bond on the securities market of the BEAC.
The Gabonese government issued a 98 billion CFA francs bond in June and on July 13th, issued a second bond with a subscription rate of 254 per cent to mobilise five billion CFA francs.
The objective of these public offerings is to raise money to achieve several urban development and infrastructure projects in the cities of Libreville, Port-Gentil, Franceville, Oyem and Bitam.
Cameroon is looking to raise 300 billion CFA francs on capital markets in 2016.
The country, which is one of the least indebted African countries, issued a bond in January 2016 to mobilise seven billion CFA francs.