Togo: Regional investors better perceive debt securities

Thursday, 17 June 2021 10:23
Togo: Regional investors better perceive debt securities

(Togo First) - Last Friday, Togo closed its fifth bond issue, with a 7-year maturity, on the regional money market. The operation, a treasury recovery bond issue, enabled the country to raise CFA27.5 billion. This new success reflects investors’ sustained trust in Togo since the end of the sociopolitical crisis it experienced in 2017.  

For the fourth issue, which closed on May 21, average weighted yield was 5.95%. For the issue before that, it was 6.09% on April 16 and 5.90%, for last week’s.  

Over the past two months, Togo gained 19 base points.  In comparison, Mali, the last country to issue a bond with the same maturity, recorded a yield of 6.02%.

The Togolese economy is expected to recover rapidly, after it was hard hit by Covid-19. The pandemic indeed halted growth which was being driven by the 2018-2022 national development plan. 

As the pandemic keeps receding globally and recovery continues, Togo should record a growth of 4.3% in 2021 and 5.6% next year, the AfDB, a pan-African bank forecast. The increase should be driven by agriculture, greater investment in the transport, energy, and industry sectors.

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