Economy Innovating in the products offered and in their distribution constitutes the
framework of the debates opened yesterday in the Senegalese capital by the Umoa-Titres Agency.
For the sovereign securities market in the Uemoa zone (Economic and Monetary Union bringing together eight
countries), there is a before and an after-December 6, 2019. Before this date, in fact, the regional securities market
public, the only regional market, by adjudication (auction system), exclusively dedicated to
financing of UEMOA member states by raising sovereign debt, was considered as a
market of small amounts. 20 billion, 30 billion CFA francs seemed to be the ceiling of possibilities
fundraising by the States.
Then came December 6, 2019. On that day, the State of Senegal made a resounding return to the market.
regional financial institution by proceeding with the simultaneous issue of three stocks of Assimilable Bonds of the
Treasuries (OAT) of 3, 5 and 7 years with the aim of raising a total amount of 200 billion FCfa on the Market
regional public securities (MTP). Investors will raise in record time up to 385 billion FCfa,
before Dakar decides to stick only to the required 200 billion.
This record has clearly changed the way we once looked at the public securities market by auction.
hitherto little known and underestimated. As a result, the second edition of REMTP, Meetings of the market for
public securities of the West African Economic and Monetary Union ( UEMOA ) which opened yesterday in Dakar
had a completely different dimension. After several years of hard work carried out by Agence Umoa-Titres
created in 2013 to support States in raising sovereign debt to finance the needs
budgets, the government securities market is now more dynamic.
The Umoa-Titres Agency (AUT) has thus mobilized for the States of the Uemoa zone , more than 3,420 billion FCfa
including 1,645 in Equivalent Treasury Bills and 1,775 in Equivalent Treasury Bonds, thus reaching a
new record in terms of amount mobilized over one year, welcomed the Director General of the Agency,
Adrien Diouf, during the opening ceremony of the Remtp in a hotel in Dakar.
The structure of the securities issued was also particularly satisfactory; more and more transmitters
opting for the in fine on their issues up to 5 years and thus making it possible to continue the
standardization of debt instruments and to extend the duration of the stock of debt, indicated Mr. Diouf at the
hurry.
It must be said that in addition to the operation of last December 6 with Senegal, the AUT also organized, according to
its Managing Director, several large-scale operations including those of exchanges of securities of Côte d'Ivoire
in May and October 2019. During these operations, he said in an interview, "Côte d'Ivoire was able to
exchange nearly 282 billion of securities maturing in 2019 and 2020 for new securities
maturing in 2022 and 2024, with financial conditions in line with the conditions
current market. This year, he concluded, is therefore a year in which the AUT has distinguished itself on its heart of
profession which remains fundraising but also on a more specialized expertise that is the active management of the
debt, a guarantee of added value for our States.
To fall asleep on these laurels is not, for the Umoa-Titres Agency, an option. It is rather a question of going further
far, the potential of the regional government securities market in the Uemoa space being barely touched upon. It's the
strong message delivered yesterday by the various players in this market, from banks that are the first investors in the
sovereign debt, SGIs (Management and Intermediation Companies) and highly anticipated insurers, such as
pension and retirement funds in the region, to expand the investor base and boost the market
regional sovereign debt.
For the managing director of Agence UMOA-Titres, "this year, these meetings are placed under the sign
financial innovation. The idea for us is to mobilize the entire financial sphere of our sub-region to innovate and attract all investors, whether they are institutional investors or investors .
individuals to come and participate in this market. (...) And thus allow our countries to raise the amounts
necessary to finance their budgets and their development projects.
Developing the regional government securities market today represents a real opportunity to be seized by
States, considers for his part, Cheikh Tidiane Diop, the Director General of Public Accounts and Treasury
from Senegal. By raising debt on the regional market in CFA currency, States would thus escape the
foreign exchange risks resulting from excessive exposure to international financial markets
in particular those of Eurobonds which increase vulnerabilities. The Dakar Meetings also offer
the opportunity for sovereign issuers to set out their funding strategies, so as to decide on the
investors. Benin and Togo made their needs known yesterday, and other States in the area
will follow today and tomorrow.
Attracting more investors from the area, but also from various parts of the world, is also
an objective of these meetings which end on Friday.