Treasury bonds: Senegal raises 27.500 billion FCFA on the WAMU financial market

The State of Senegal, through its public treasury, raised on December 18, 2020 on the financial market of the West African Monetary Union (WAMU) an amount of 27.500 billion FCFA (41.250 million euros) at the end of their simultaneous issue by auction of assimilable treasury bonds (OAT) with a maturity of 36 months, announced the officials of the Agence UMOA-Titres based in Dakar.

This issue aims to mobilize the savings of natural and legal persons in order to cover the financing needs of its budget. For the month of December 2020, the intentions to issue public securities of the Senegalese government authorities amounted to 50 billion FCFA as in November 2020.

Investors operating on this market have responded massively to the solicitation of the State of Senegal with a total amount of bids of 76.773 billion FCFA out of an amount put up for auction of 25 billion FCFA, i.e. a rate of coverage of the amount put up for auction of 307.09%.

Of the amount of the bids, the issuer withheld 27.500 billion FCFA and rejected the remaining 49.273 billion FCFA, representing an absorption rate of 35.82%.

The three most important bids retained come from investors from Togo (14 billion), Senegal (10.500 billion) and Côte d'Ivoire (3 billion).

Reimbursement of the securities issued will be made in full on the first business day following the due date set at December 21, 2023. On the other hand, interest will be paid annually from the end of the first year at a rate of 5.75%.