WAEMU countries successfully raised a total of CFA1,172.63 billion through the issue of covid-19 social bonds on the regional public securities market between April 27 and May 14 (18 days).

The Bonds were issued in the form of treasury bills (BATs) with a 3-month maturity and an average rate of 3%. The resources enabled States to finance their urgent response plans against the pandemic, pending funds from financial technical partners.

Côte d’Ivoire comes first, raising CFA535 billion (about $890 million) in three operations, followed by Benin (CFA133 billion, or about $221 million), Niger (CFA110 bln, or $183 mln), Togo (CFA108 bln, or about $180 mln) and Senegal (CFA103.13 bln, or about $171.5 mln).
Mali, Burkina Faso, and E. Guinea respectively raised CFA88 bln (about $146.5 million), CFA80 billion (about $133 million), and CFA15.5 billion (about $25.8 million).

According to data collected from 10 covid-19 bonds issues on the market, the average coverage rate for all operations was 382%, reflecting the strong interest from investors. Although the maturity periods are rather short, the success of these operations could pave the way for the introduction of innovative ad hoc financial solutions on the market.

Borgia Kobri