The State of Burkina Faso, through its General Directorate of the Treasury and Public Accounts, raised on June 24, 2021 on the financial market of the West African Monetary Union (UMOA) an amount of 76.229 billion FCFA (114.344 million euros) at the end of its issuance of treasury stimulus bonds (ORD) with maturities of 3, 5 and 7 years organized in partnership with the UMOA-Titres Agency based in Dakar.
Launched by the UMOA-Titres agency in collaboration with the Central Bank of West African States (BCEAO), the issuance of ODRs aims to allow the issuer to mobilize the savings of natural and legal persons in order to ensure the financing needs of the State budget of Burkina Faso are covered as part of its economic recovery plans in order to contain the effects of the COVID-19 pandemic and return to pre-crisis performance sanitary. It targets 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.
At the end of the auction, the UMOA-Titres agency listed 160.032 billion FCFA where the issuer requested only 70 billion FCFA. This gives a coverage rate of the amount put out to tender of 228.62%. Of the total amount proposed by the investors, the Burkinabé Public Treasury retained 76.229 billion FCFA and rejected the remaining 83.802 billion FCFA, ie an absorption rate of 47.63%.
The securities issued will be redeemed on the first business day following the maturity date set on June 24, 2024 for ODRs with a 3-year maturity, on June 24, 2026 for ODRs with a 5-year maturity and on June 24, 2028 for ODRs with a maturity of 7 years. As regards the payment of interest, it will be made at the end of the first year at a fixed interest rate of 5.55% for 3-year ODRs, 5.80% for 5-year and 6-year ODRs, 10% for 7-year ODRs.
