Senegalese Government: Successful 71.5 Billion FCFA UEMOA Market Bond Issuance

• The Government of Senegal raised 71.5 billion FCFA on the UEMOA market through a simultaneous auction of treasury bills and bonds.
• The retained bids totaled 71.5 billion FCFA, while the rejected bids amounted to 11.482 billion FCFA.
• Investors will receive an average weighted yield of 7.65% for treasury bills, 7.95% for 3-year bonds, and 8.17% for 5-year bonds.
• The DGFD is committed to repaying the issued bonds on their maturity dates.

The retained bids totaled 71.5 billion FCFA, while the rejected bids amounted to 11.482 billion FCFA.

The Government of Senegal raised 71.5 billion FCFA on the UEMOA market through a simultaneous auction of treasury bills and bonds. The Direction Générale des Financements et de la Dette (DGFD) had put up for bid a total amount of 65 billion FCFA, but received global submissions from investors totaling 82.982 billion FCFA, representing a coverage rate of 127.67%. The retained bids amounted to 71.5 billion FCFA, while the rejected bids totaled 11.482 billion FCFA, resulting in an absorption rate of 86.16%.

The bond issuance was organized in partnership with UMOA-Titres, a specialized agency responsible for managing public debt in the West African Economic and Monetary Union (UEMOA). The DGFD is committed to repaying the issued bonds on the first working day following their maturity dates. For treasury bills, this date is August 1, 2027, while for 3-year and 5-year bonds, it is August 3, 2029 and August 3, 2031, respectively.

The successful bond issuance by the Government of Senegal may indicate a stable economic environment for investors. The high demand and favorable interest rates offered in this bond issuance are noteworthy. Lawyers advising clients on West African investments should take note of these developments, as they may have implications for future investment decisions.

Lawyers advising clients on West African investments should note the high demand and favorable interest rates offered in this bond issuance, which may indicate a stable economic environment for investors.

Source: Original reporting via Le Sénégal lève 71,5 milliards FCFA sur le marché de l’UEMOA