The State of Benin, through its General Directorate of Treasury and Public Accounts, raised on December 2, 2020 on the financial market of the West African Monetary Union (UMOA) an amount of 133 billion FCFA (199.500 million d ‘euros) at the end of its auction issuance of 28-day assimilable treasury bonds (BAT) called Covid-19 Social Bonds.
This fundraising aims to allow the Beninese authorities to mobilize the savings of natural and legal persons in order to cover the cash flow gaps created by the fight against the pandemic caused by COVID-19 and its consequences.
Investors tendered strongly with a total amount of CFAF 429.700 billion for an amount put out to tender by the issuer of CFAF 133 billion. This gives a coverage rate for the amount put out to tender is thus 323.08%.
From the amount of the bids, the issuer withheld 133 billion FCFA (corresponding to the required amount) and rejected the remaining 296.700 billion FCFA, ie an absorption rate of 30.95%. The average yield is 2.36%. The weighted average rate is 2.35% and the marginal rate is 2.42%.
The repayment of the capital by the issuer will take place on the first business day following the due date of December 30, 2020.
Interest at a rate of 3% or less is payable in advance and deducted from the nominal value of the bonds, which is one million FCFA.
