Homepage

Côte d’Ivoire Raises CFA109bn in Regional Bond Market Amid Rising Interest Rates

Côte d’Ivoire Raises CFA109bn in Regional Bond Market Amid Rising Interest Rates
Wednesday, 04 September 2024 17:47

Yesterday, Côte d’Ivoire successfully raised CFA109 billion ($183.6 million) in the regional public securities market. Through this latest auction of Treasury bills and bonds (BAT and OAT), the country exceeded its initial goal of CFA100 billion. This success comes despite ongoing global and regional economic pressures from inflation and high interest rates.

Ivorian investors played a significant role, contributing CFA106 billion, or 86% of the total amount raised. The auction attracted a total of CFA118.68 billion in bids, with CFA109.55 billion ultimately accepted. This outcome is credited to the Ivorian authorities' strategy of balancing short-term maturities (91 and 364 days) with medium-term bonds (3 and 5 years).

In detail, the 91-day Treasury bills saw a coverage rate of 118.68%, while the 364-day bills followed closely with 109.55%. The 3-year and 5-year bonds were fully subscribed, each achieving a 100% coverage rate.

However, to secure these funds, Côte d’Ivoire had to offer attractive yields in a global environment marked by rising interest rates. The 91-day Treasury bills offered a weighted average yield of 2.48%, while the 364-day bills reached 7.20%. Longer-term bonds also offered competitive yields, with the 3-year bonds at 7.42% and the 5-year bonds at 7.64%.

These yield levels reflect the ongoing inflationary pressures and rising benchmark rates in international markets, which force issuers to offer higher risk premiums to attract investors. While Côte d’Ivoire's rates remain competitive within the WAEMU space, the country is less affected than some of its neighbors, where yields range between 9% and 10%. According to several WAEMU asset managers, regional yields are expected to stay above 7% until at least the first quarter of 2025.

With this new operation, Côte d’Ivoire strengthens its position as the leading borrower in the regional bond market, having already raised over CFA1,900 billion this year. Before this latest auction, the country had conducted 18 auctions of 91-day Treasury bills, 28 of 364-day bills, and multiple issuances of 3-year and 5-year bonds. This strategy is part of an active public debt management approach, aiming to balance immediate financing needs with medium-term repayment pressures.

In September 2024 alone, Côte d’Ivoire must repay CFA348 billion in debt to market investors. This fundraising provides a much-needed financial boost as Abidjan navigates between meeting debt obligations and securing new loans.

The key question now is whether Côte d’Ivoire can continue raising funds in the regional market on "favorable terms," as economic pressures intensify and the need for financing remains high.

Most Read
01

Botswana signs $12 billion investment agreement with Qatar’s Al Mansour Holdings Deal spans ...

Botswana secures $12bn Qatari support for development projects
02

It’s a common scene in any Lomé (Togo) market, but it’s telling. A customer hands a 10,000 CFA franc...

The Change Shortage: A Crisis Hidden by the CFA Franc’s Stability
03

Africa surpasses 70 GW renewables, remains import-dependent. China dominates solar, batteries...

Africa’s Renewable Energy Boom: A Green Revolution Built on Imports
04

Zambia and Qatar’s Al Mansour Holdings signed a $19 billion partnership in Lusaka. The...

Zambia signs $1bn deal with Qatar, one of its largest
05

Egypt’s handset market is projected to leap from $2.5 billion in 2025 to $4.8 billion by...

Egypt’s $2.5B-to-$4.8B Smartphone Surge Set to Reshape Africa’s Tech Map by 2031
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

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


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.