(Ecofin Agency) - With XOF873 billion ($1.42 billion) raised this year, governments have already made twice as many public securities issuance as they made in 2022.

As of February 20, 2023, WAEMU countries have raised XOF873 billion ($1.42 billion) in 53 operations, according to data seen by Ecofin Agency. Specifically, the funds were raised through 25 and 28 treasury bills and bond issuance operations on the auction market organized by Umoa-Titres.

The envelope raised is up by 11% year-on-year, driven by the huge number of public securities issuance operations organized at the begining of 2023. In about two months this year, the governments completed twice as many operations as they did during the same period in 2022. In fact, they organized 53 transactions in four months in 2022. The number of operations recorded this year also surpasses those of 2021 and 2020 when 31 and 29 operations were recorded respectively.

This renewed interest in the local sovereign market is attributed to the tightened conditions for access to the international bond market, which forced member countries to revise their securities issuance plans. 

Last year, they raised XOF5,254 billion ($8.5 billion) on the public securities market. Should the issuance pattern observed since the beginning of the year continues, that figure will be exceeded by far in 2023.

Let's note that as of February 20, 2023, WAEMU countries had made XOF525 billion (over $800 million) in principal and XOF95 billion (more than $155 million) in interest payments. 

Fiacre E. Kakpo