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WAMU financial market: Burkina raises 45.500 billion FCFA in support and resilience bonds

23/09/2021
Categories: Index/Markets

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Thanks to the issue of assimilable Treasury bonds (BAT) called "support and resilience bonds" with a maturity of 364 days, organized in partnership with the Agence UMOA-Titres, Burkina raised this September 22, 2021 on the financial market from the West African Monetary Union (WAMU) an amount of 45.500 billion FCFA (68.250 million euros).

After the auction, the UMOA-Titres agency identified 51.500 billion FCFA in overall bids from investors out of an amount put up for auction by the issuer of 45 billion FCFA, i.e. a coverage rate of the amount put up for auction of 114, 44%. Of the total amount of bids, the Burkinabe Public Treasury withheld 45.500 billion FCFA and rejected the remaining 6 billion FCFA, ie an absorption rate of 88.35%. The issuer has undertaken to redeem the securities issued on the first business day following the maturity date set at September 21, 2022. However, interest is payable in advance and deducted from the nominal value of the warrants, which is one million FCFA. The weighted average return was 2.80%. For their part, the weighted average rate and the marginal rate stood at 2.72% and 3.00% respectively. It should be recalled that the issue of support and resilience bonds aims to enable the issuer to mobilize the savings of natural and legal persons in order to cover the cash requirements necessary on the one hand to support economic recovery efforts States.

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