• Gabon launched a CFA85 billion ($153 million) bond on the Cemac market, offering 6% over three years and 6.5% over four years.

• The issuance includes CFA60 billion in cash financing and CFA25 billion to convert validated state arrears into bonds.

• The operation supports 2026 budget projects and tests the depth of the regional financial market.

Gabon on February 25 launched a public bond offering on the financial market of the Central African Economic and Monetary Community (Cemac), seeking CFA85 billion ($153 million).

The issuance is structured in two tranches. Tranche A offers a 6% annual interest rate over three years, while Tranche B carries a 6.5% rate over four years. For both tranches, the principal will be repaid in full at maturity.

Proceeds will finance priority projects identified by the government and included in the 2026 Finance Law. The subscription period runs from February 25 to May 25. Emrald Securities Services Bourse acts as lead arranger, with CCA Bourse as co-arranger.

According to the prospectus approved by the Central African Financial Market Supervisory Commission, the bonds will carry a 0% prudential risk weighting. This means banks will not be required to allocate regulatory capital against sovereign risk when subscribing.

Since 2007, Gabon has raised a cumulative CFA1,641 billion on the regional market through public offerings and private placements. The new transaction follows that track record.

Reducing arrears and easing cash pressures

The operation combines two components. CFA60 billion will be raised in cash. An additional CFA25 billion will be used to partially buy back commercial arrears owed by the State to companies.

Under the mechanism, an investor holding a validated government claim can convert it into bonds of an equivalent amount, provided they contribute the same amount in cash, based on a 1:1 ratio. At the end of the process, the investor holds bonds that will be repaid according to the agreed schedule.

A debt strategy anchored in the regional market

The issuance is part of Gabon’s 2026 borrowing strategy, which calls for significant reliance on both domestic and external financing, with the regional financial market and semi-concessional loans playing a central role.

The operation will serve as a test of the Cemac market’s depth and of the Gabonese Treasury’s ability to mobilize local savings at a time of elevated financing needs.

Chamberline Moko