The State of Benin, through the General Directorate of the Treasury and Public Accounts, raised on May 27, 2021 on the financial market of the West African Monetary Union (UMOA) an amount of 66 billion FCFA (99 million d ‘euros) following its simultaneous issuance of a 3-year Treasury stimulus bond (ORD).
ODR issues are initiated by the UMOA-Titres agency in collaboration with the Central Bank of West African States (BCEAO). They aim to allow the issuer to mobilize the savings of natural and legal persons in order to cover the financing needs of the Benin State budget as part of its economic recovery plans in order to contain the effects of the COVID-19 pandemic and reconnect with pre-health crisis performance. They target not only socially responsible investors but also companies or individuals wishing to support the economic recovery actions initiated by the States of the UEMOA zone.
After auction, the UMOA-Titres agency listed 170.805 billion FCFA in global bids from investors on the amount put out to tender by the issuer of 60 billion FCFA. This gives a coverage rate of the amount put out to tender of 284.68%. From the amount of the bids, the Beninese Public Treasury retained 66 billion FCFA and rejected the remaining 104.805 billion FCFA, ie an absorption rate of 38.64%.
The repayment of the capital of the securities issued will take place on the first business day following the due date of May 28, 2024. As for the payment of interest, it will be made annually on the basis of an interest rate of 5.25%. The weighted average yield was 5.09%. As for the weighted average price and the marginal price, they are respectively 1004 and 1002.
