74%. That is the subscription rate of the first synthetic bonds issued by Benin. This was revealed by the WAMU-Securities Agency (Agence UMOA-Titres). Out of the FCFA55 billion requested by the government of the West African nation, investors’ demand stood at FCFA40.86 billion.

According to some analysts, this subscription rate marks a somehow mitigated debut for this type of financial products (synthetic bonds), which are said to be innovative and likely to bring a new breath of air to the WAEMU’s capitals market. However, a few details allows a more position appreciation.

For the part of the issuance comprised of treasury bonds with a year maturity period, investors’ weighted average rate stood at 5.58%. This is almost 0.5% less than the rate offered for the same bonds issued by Benin in January, February, April and May 2017, whose average was 6.2%. Moreover, at 74%, the subscription rate is above the 65% average obtained for January-August 2017, by the country.

Côte d’Ivoire was the first to issue synthetic bonds on the WAEMU’s capitals market. The operation was subscribed at 90.1%.

Let it be recalled that these bonds are financial instruments through which governments allow interested investors to position themselves on many maturities in a single operation.