burkina Faso has successfully raised over 103 billion FCFA (West African CFA franc) through a bond issuance on the regional financial market of the West African Economic and Monetary Union (UEMOA). The bond, structured and managed by Coris Bourse, exceeded its target of 100 billion FCFA, achieving a subscription rate of 103.9%.
The issuance,which closed last week after a three-week subscription period,was divided into two tranches. The first tranche, worth 60 billion FCFA, offered a 6.50% interest rate over five years with a two-year grace period. The second tranche, valued at 40 billion FCFA, carried a 6.80% interest rate over eight years with a three-year grace period.
“The funds raised will be used to finance structural projects as part of the government’s vision for economic and social growth,” the proclamation stated.
Coris Bourse,a subsidiary of the Coris Group and a member of the Regional Securities Exchange (BRVM),was selected as the arranger and lead manager for the operation. “Coris Bourse is the first SGI nationally and in terms of asset conservation on the regional financial market,” said Fancho Hermann Traoré, managing Director of Coris Bourse, in May 2024.
Coris Bourse, a management and brokerage company, manages a portfolio of over 8,000 clients and holds a nearly 10% market share in the regional financial market. It is certified by ISO 2015.
This triumphant bond issuance follows Burkina Faso’s ambitious fundraising goals for 2024. The General Directorate of Finance and Public Accounting (DGTCP) aimed to raise 1,220 billion FCFA on the regional financial market this year.
Earlier in the year, Burkina Faso successfully raised 130 billion FCFA through a public savings call (APE) on the Umoa financial market. This operation, which ran from April 11 to May 13, 2024, was also oversubscribed.
These fundraising efforts highlight Burkina Faso’s commitment to securing financing for its development projects and its confidence in the regional financial market.
In a testament to resilience amidst global uncertainty, the West African Monetary Union (WAMU) has successfully issued its second Eurobond, raising crucial funds for development projects. This achievement comes despite a challenging security and geopolitical landscape, underscoring the region’s commitment to economic progress.
“with this second successful EPA for the country, we can say that the goal of the DGTCP has been achieved,” a statement from the issuing entity declared.
The issuance of this Eurobond signifies a meaningful milestone for WAMU, demonstrating investor confidence in the region’s economic potential. The funds raised will be instrumental in supporting vital development initiatives across member countries.
This success story highlights the determination of West African nations to overcome adversity and forge a path towards lasting growth and prosperity.
## Burkina Faso Bond Issuance: A Signal of Economic Resilience?
**World Today News**: Burkina Faso has recently made headlines by successfully raising over 103 billion FCFA through a bond issuance on the regional financial market. This achievement,exceeding the initial target of 100 billion FCFA,has sparked interest from investors and analysts alike. Today, we are joined by Dr. [Expert Name], an economist specializing in West African finance, to delve into the meaning of this bond issuance for Burkina Faso. Dr. [Expert Name], thank you for joining us.
**Dr. [Expert name]**: My pleasure. It’s a pleasure to be here.
**World Today News**: This bond issuance comes at a time when Burkina Faso faces ample security and economic challenges. How would you interpret the market’s positive response?
**Dr. [Expert Name]**: This prosperous bond issuance is undoubtedly a positive signal.It demonstrates that despite the current difficulties, investors retain confidence in Burkina Faso’s long-term economic prospects.
The fact that the bond exceeded its target, achieving a subscription rate of over 103%, indicates strong investor appetite. This suggests that Burkina Faso’s government has articulated a credible economic vision that resonates with the market.
**World Today News**: Can you elaborate on the structure of this bond issuance?
**Dr. [Expert Name]**: The issuance was carefully structured into two tranches. The first tranche, totaling 60 billion FCFA, offers a 6.50% interest rate over a five-year period with a two-year grace period. This attractive rate and the grace period likely played a role in attracting investors.
The second tranche, details of which are yet to be announced, likely caters to different investor profiles and risk appetites.
**World Today News**: what are the potential implications of this successful bond issuance for Burkina Faso’s economy?
**Dr. [Expert Name]**: The influx of capital from this bond issuance can provide a notable boost to the Burkinabe economy. These funds can be channeled into critical areas needing investment, such as infrastructure development, healthcare, education, and agricultural modernization.
It’s critically important to remember that raising capital is just the first step.
**World Today News**: What are the crucial next steps for Burkina Faso to ensure that these funds are effectively utilized?
**Dr. [Expert Name]**: Transparency and accountability are paramount. The Burkinabe government must ensure clear and transparent dialog regarding the utilization of these funds, adhering to sound fiscal management practices.
Moreover, channeling investments into projects with a high potential for social and economic impact, particularly those aligned with lasting development goals, will be crucial for long-term growth.
**World Today News**: Looking ahead, what does this
successful bond issuance signify for Burkina faso’s future relationship with the regional and international financial markets?
**Dr.[Expert Name]**: It strengthens Burkina Faso’s standing in the international financial market. This successful issuance can pave the way for future fundraising initiatives, possibly at more favorable terms.
though, sustaining this positive momentum will require continued economic reforms, political stability, and a commitment to good governance.
**World Today News**: dr. [Expert Name], thank you for sharing your valuable insight and analysis on this critically important development.
**Dr. [Expert Name]**: Thank you for having me.
**World Today News**: And to our viewers, stay tuned for more in-depth coverage and analysis of Burkina Faso’s economy on World Today News.
