(Ecofin Agency) - Senegal's incumbent telecommunications operator, Sonatel, announces that it has closed early its public bond issue launched on 15 June on the financial market of the West African Economic and Monetary Union (Uemoa). The operation, which involved the issue of 10 million dematerialized bonds at a unit price of CFA10,000, was oversubscribed at more than 120% five days before its deadline of 15 July 2020.

The 10 million bonds were placed up to 39% with investors in Senegal, 38% with investors in the Uemoa region outside Senegal, and 23% outside the Uemoa region. The effective date is set for July 16, 2020. The securities will have to be listed on the Regional Stock Exchange (BRVM) in the following weeks, and the Central Bank of West African States (BCEAO) will have to submit an application for eligibility for refinancing.

Sonatel plans to use the net proceeds of the bond issue for its investment plan in Senegal for the year 2020, which covers the development of broadband infrastructure; the launch of new energy, banking, and multimedia content businesses; and the modernization and extension of the telecoms network.

For Sékou Drame, MD of Sonatel, this oversubscription despite the difficult global context linked to the Covid-19 pandemic shows the confidence that investors have in “the women and men of the telecoms group.” He stated that “the commitment is made to succeed together in our mission by achieving the objectives set and the fruition of these massive investments.”