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UMOA: Guinea-Bissau raises 14.491 billion FCFA on the financial market

09/09/2021
Categories: Index/Markets

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On September 7, 2021, the State of Guinea-Bissau issued Treasury stimulus bonds (ORD) with a maturity of 5 and 7 years on the financial market of the West African Monetary Union (WAMU). Worth 14.491 billion FCFA, this operation was organized in partnership with the Agence UMOA-Titres based in Dakar.

The UMOA-Titres agency listed 81.145 billion FCFA in overall bids from investors out of an amount auctioned by the issuer of 15 billion FCFA. This gives a coverage rate of the amount auctioned of 540.97%. Of the overall amount proposed by the investors, the Public Treasury of Bissau-Guinean withheld 14.491 billion FCFA and rejected the remaining 66.653 billion FCFA, ie an absorption rate of 17.86%. Reimbursement of the capital of ODRs with a maturity of 7 years, its reimbursement will take place on the first business day following the due date set for September 8, 2028 and the payment of interest from the end of the first year at a rate of 6.40 %. Concerning the capital of ODRs with a maturity of 5 years, it will take place on the first business day following the maturity date set for September 8, 2026. This issue will allow the country to mobilize the savings of natural and legal persons in order to ensure coverage of financing needs of the State budget as part of its economic recovery plans in order to contain the effects of the COVID-19 pandemic and restore the performance prior to the health crisis.

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