Togo again seeks CFA20 billion on the regional money market

Monday, 26 April 2021 18:36
Togo again seeks CFA20 billion on the regional money market

(Togo First) - Togo just announced a new recovery bond issue on the regional debt market - WAEMU securities market. The operation, which should enable the country’s public treasury to raise CFA20 billion, will close on April 30, 2021. 

The nominal value of each bond issued is CFA10,000. They will mature over five years, at an interest rate of 5.8% per annum. 

The issue’s proceeds will be used to drive economic recovery post-Covid. 

The operation is organized in a context where investors are showing more interest in recovery bonds (ODR). Indeed, the country recently proceeded to a simultaneous issuance of these bonds and raised a total CFA82.5 billion while initially seeking CFA75 billion.

Recovery bonds, let’s recall, are new debt instruments created by the Central Bank of West African States (BCEAO) to help WAEMU member States restart their economies, as they greatly suffered the Covid-19 health crisis. These bonds are eligible for refinancing at the Central Bank’s traditional windows and also at a new one called the Relance window where investors can mobilize cash at a minimum bid rate of 2% (at the moment), over a 6-month period, renewable as long as the ODRs are alive.

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