• Chad raised CFA34.6 billion ($60 million) from two public securities issues on April 23.
• The 26-week Treasury bill sale fell short of expectations, with only 78.4% of the target raised.
• Three-year Treasury bonds attracted strong demand, fully meeting the CFA15 billion goal.

Chad secured CFA34.6 billion (about $60 million) from two debt offerings on the Central African regional market last week, according to results published by the Bank of Central African States (BEAC). The amount is below the CFA40 billion initially targeted.

The underperformance was mainly due to low demand for the 26-week Treasury bills, which brought in just CFA19.6 billion against a target of CFA25 billion. That represented a 78.4% coverage rate. Investors offered interest rates between 6.50% and 6.75%.

On the other hand, the three-year Treasury bond auction was well received. It drew offers totaling CFA22.5 billion, far above the initial target. The Treasury ultimately accepted CFA15 billion, achieving 100% of its goal. The accepted bid prices ranged between 90% and 95% of face value, with a fixed interest rate of 6%.

The outcome suggests investors are more attracted to longer-term bonds offering better returns. Despite the security challenges across the Sahel region, Chad’s economy grew by 3.7% in 2024, the World Bank reports. The non-oil sector led with 4.6% growth, while the oil sector grew by 1.4%, reflecting a 4.2% increase in production.