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WAMU financial market: Burkina raises 55 billion FCFA in stimulus bonds

30/07/2021
Categories: Index/Markets

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The General Directorate of Treasury and Public Accounting of Burkina Faso raised on July 28, 2021 on the financial market of the West African Monetary Union (UMOA) an amount of 55 billion FCFA. This was at the end of its issue of Treasury bonds (ORD) with maturities of 3 years and 10 years organized in partnership with the Agence UMOA-Titres based in Dakar.

At the end of the auction, the UMOA-Titres agency listed 177.902 billion FCFA where the issuer only requested 50 billion FCFA. This gives a coverage rate of the amount auctioned of 355.81%. Of the overall amount proposed by investors, the Burkinabe Public Treasury withheld 55 billion FCFA and rejected the remaining 122.902 billion FCFA, ie an absorption rate of 30.92%. The securities issued will be redeemed on the first business day following the maturity date set at July 29, 2024 for ODRs with a 3-year maturity. Regarding the payment of interest, it will be made from the end of the first year at a fixed interest rate of 5.55%. As for ODRs with a 10-year maturity, they will also be reimbursed on the first business day following the maturity date set at July 29, 2031. Interest will be paid, however, from the end of the first year at a fixed interest rate. of 6.20%. The issuance of ODRs aims to enable the issuer to mobilize the savings of natural and legal persons in order to cover the financing needs of the Burkina Faso State budget as part of its recovery plans. economy in order to contain the effects of the COVID-19 pandemic and restore performance prior to the health crisis.

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