Finance

Mali misses target in its new bond issue

Thursday, 03 November 2022 16:30
Mali misses target in its new bond issue

(Ecofin Agency) - Bamako, which re-entered the government securities market just three months ago, is accelerating its issues to reach at least half of its pre-sanction targets. But investors are still wary of its securities.

On November 2, 2022, Mali again missed its target in the WAEMU financial market after a failed operation last September 21. The country, which is racing against time to make up for the delays caused by the ECOWAS-imposed economic sanctions, was sourcing XOF40 billion to cover its budget deficit but, it raised only XOF21 billion in a double operation that day.

Yet its investments came from all WAEMU countries, except for Togo and Senegal, with Abidjan-based bidders in the lead.

Since its come-back in the regional financial market (on August 9, 2022) where it raised over XOF277 billion in three simultaneous operations, the Malian Treasury has multiplied its issuance operations. In the three months since its return, the country has raised more thanXOF425 billion, including XOF83 billion through issuance of treasury bills and XOF342 billion through issuance of bonds.

The country is hard hit by a security crisis ongoing since 2012. That crisis was exacerbated by the external factors prevailing over the past two years (the Covid-19 pandemic and the Russia-Ukraine conflict). With the sanctions it was imposed after the coup that brought a military junta to power, its sovereign rating was downgraded.  

Its recent result is mainly due to investors’ risk aversion due to the repayment arrears the country accumulated from January to the end of July. The fact is reflected in the interest rates backing the securities.  Indeed, the yields, which are the rates at which investors would be willing to buy new Malian securities or Malian securities of the same maturity on the secondary market, has slightly increased. This increase reflects the market's reluctance to invest in Mali.

Last November 2, the country issued two types of bonds, a 3-year and 7-year securities. The average yield for the 7-year security rose from 6.59% to 6.61%. It is slightly higher than the 6.01% rate for the 7-year bond issued the previous week by Senegal in the same market. Even Guinea-Bissau, which is a small economy compared to Mali, posts a better yield for its 3-year bond. The average yield was 6.03% against 6.20% for Mali.  

According to the indicative timetable of WAEMU securities issuances, Mali is expected to organize four bond issuance operations to raise XOF70 billion by the end of 2022. Overall, it would then raise XOF500 billion, half of the goals it stated at the beginning of the year before being hit by ECOWAS sanctions.

Fiacre E. Kakpo



 
Telecom


 
Public Management


Ecofin Agency covers the news from 9 business sectors in Africa: Public management, Finance, ICT, Agribusiness, Electricity, Mining, Oil and Gas, Comms and Laws. Ecofin Agency is also creating and management specialized medias, in paper and on the web/social networks, for institutions or African publishers.

AGENCE ECOFIN

Mediamania Sarl
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11

REDACTION
redaction@agenceecofin.com

Public management
Aaron AKINOCHO
Borgia KOBRI
Moutiou ADJIBI

Finance
Idriss LINGE
Walid KEFI
Chamberline MOKO

Agribusiness
Espoir OLODO

Electricity
Gwladys JOHNSON

Oil and Gas
Olivier DE SOUZA

Mining
Louis-Nino KANSOUN

ITC 
Muriel EDJO

Comms
Servan AHOUGNON

Cameroon
Brice R. MBODIAM
Sylvain ANDZONGO
Monique MAY
Julienne Rose SENDE

Togo
Fiacre E. KAKPO
Waliyullah TAJUDEEN
Séna AKODA

Niger
Sandrine GAINGNE

Gabon
Stephane BILLE
Pierre-Celestin ATANGANA

Desk
Stéphane ALIDJINOU
Souha TOURE
Vahid CODJIA
Diane ZODEHOUGAN
Hikmatu BILALI

Translation
Schadrac AKINOCHO
Mouka MEZONLIN
Firmine AÏZAN



Digital
Omar SOKHNA
Mamadou DIOP
Bacary MANE
Abdel Razak MOULIOM

Digital Marketing
Jérémie FLAUX
Geraud ACHI
Jean Christian BERNARD
Franck FOUTE

Web publishing
Bakoly RAHARISOA
Rina RAMANANDRAISOA
Hasina RAJEMISON

Development
Dominique FLAUX

 


 
REGIE COMMERCIALE
AGENCE ECOFIN
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11
Fax: +41 22 301 96 10

Benjamin FLAUX
bf@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72

Voir page 
Nos services
 

 










 



Ecofin Agency is a news agency for economic and sectorial information. It was created in 2010 and it website was launched in June 2011.

Please publish modules in offcanvas position.