• The Central African Republic raised CFA50 billion with full subscription on five bonds.

• Chad and Gabon saw mixed outcomes, with short-term debt drawing more investor interest.

• BEAC’s tighter monetary policy continues to shape CEMAC nations’ fundraising efforts.

The Central African Republic stood out in April’s regional bond market activity with a 100% success rate across five separate Treasury bond issues. According to data released by the Bank of Central African States (BEAC), the country secured CFA50 billion (about $86.6 million) on April 28, meeting its full fundraising target.

The Treasury bonds (OTA) had maturities ranging from 2 to 7 years. The strong demand was supported by attractive yields between 6% and 7.5%, which helped the country fully cover its borrowing goals.

Chad also posted encouraging but uneven results. OTA issues on April 23 and April 30 were both oversubscribed, exceeding 100% coverage. However, a 26-week Treasury bill (BTA) auction held on April 23 drew less investor enthusiasm, with only 78.4% of the CFA25 billion target met, totaling CFA19.6 billion.

In Gabon, investor interest was sharply divided. 13-week BTAs were heavily oversubscribed at 145.8%, with an average yield of 6.48%. But the demand for longer-term securities was much weaker. Only 39.2% of Gabon’s 26-week BTAs were covered, and just 25.7% of its 5-year OTA offer was taken up. This suggests a growing investor preference for short-term debt, likely tied to concerns about Gabon’s long-term repayment capacity, despite relatively competitive yields of 6.5%.

Cameroon, the largest economy in the region, also fell short of expectations. A 52-week BTA issued on April 28 reached only 70.8% coverage, signaling moderate interest from the market.

All of these fundraisings are intended to finance public development projects across the CEMAC region, which includes Cameroon, Chad, Gabon, the Central African Republic, Congo, and Equatorial Guinea. These operations come amid a tighter monetary environment, as BEAC continues to pursue restrictive policies to manage inflation, which has remained stubbornly high in recent years.