On Monday, December 9, 2019, the ceremony for the first listing of the bond loan of the Public Treasury of Burkina Faso was held in Ouagadougou. More than 125 billion CFA francs have been mobilized by financial intermediaries, led by the Burkinabè Financial Intermediation Company (SBIF). The issue involved 75 billion CFA francs desired by the Burkinabè State, for an interest rate of 6.50% per year, with a two-year grace period.

The State of Burkina Faso, through this operation, borrowed the sum of 125 billion CFA francs from the public, through the channel of the financial market of the West African Economic and Monetary Union (UEMOA). The repayment of the capital will be half-yearly after two years, at the rate of one-twelfth of the capital. This would mean that after two years, the Burkinabè State will pay an annual interest rate of 6.50%, or 3.25% every six months, corresponding to 325 CFA francs for each bond purchased at 10,000 CFA francs. . This issue corresponds to the ninth IPO of the Burkinabè State on the stock market, which gives it second place after Côte d'Ivoire, with a total of 776 billion CFA francs mobilized since its first IPO in 2003.

As a reminder, on June 18, 2019, the Ministry of Economy, Finance and Development of Burkina Faso ordered the Public Treasury to raise funds to the tune of 75 billion CFA francs on the regional financial market of Burkina Faso. WAEMU, for financing growth-enhancing projects included in the PNDES. The issue was launched on September 12, 2019, under the name of “Trésor public du Burkina Faso (TPBF) 6.50% 2019-2027”, for a two-month maturity.

7,500,000 bonds were issued on occasion for a value of 10,000 CFA francs per bond, at an interest rate of 6.50% per year with a two-year grace period. Mandate was given to the Burkinabè Financial Intermediation Company (SBIF), in June 2019, to structure and carry out this bond loan and to ensure its listing on the WAEMU regional financial market, as arranger and head queue for the operation.

On the date of listing, December 9, 2019, subscriptions that took place from September 12 to October 3, 2019 recorded 148,125,000,000 CFA francs out of the 75 billion sought. However, explains the Deputy Director General of the Public Treasury, Aminata Ouédraogo, taking into account the requirements of Burkina Faso's debt strategy, an amount of 125 billion CFA francs was finally retained.

According to her, the "TPBF 6.50% 2019-2027" loan was aimed at mobilizing additional resources to ensure the financial balance of the State budget, management 2019. The director general of the SBIF, Alexis Lourgo, shows that 53.21% of those who subscribed reside in Burkina Faso. He adds that of the 28 approved management and intermediation companies on the market, 23 participated in the placement of the bonds of this TPBF loan. SBIF managed the operation with other co-lead managers such as Coris Bourse.

The Deputy Director General of the Public Treasury, Aminata Ouédraogo, said that the Public Treasury of Burkina Faso has a long experience in issuing public securities. From 2002 to 2019, 149 issues were made, including 100 issues of Treasury bonds, which mobilized 2,464.85 billion CFA francs; 40 issues of Treasury bonds, with 949.7 billion CFA francs mobilized and finally nine issues of bond loans by public call for savings, for an amount of 776 billion CFA francs mobilized.

The Director General of the Regional Stock Exchange (BRVM), Dr. Edoh Kossi Amenounve, notes that the 776 billion mobilized during the nine interventions have made Burkina, the third sovereign issuer of the bond market. "The States of the Union are increasingly resorting to the regional financial market to meet their long-term financing needs", he rejoices.

He informs that the Banque de l'habitat du Sénégal (BHS) and its institution have signed an agreement for the issuance and listing of bonds dedicated to the diaspora. "The success of the operation subscribed to 114%, testifies to the interest of our compatriots residing abroad", he adds. He said he hoped that other States of the Union, such as Burkina Faso, would soon experiment with the method, which was a first on the African continent.

For the BRVM Regional Branch, BRVM listing sessions can be followed live using ICT. The sessions are daily and open at 9:45 a.m. and close at 2:45 p.m., informs Marcelin Yoni, assistant at the BRVM regional branch in Burkina.

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