Stimulus bonds: Burkina Faso raises 43.746 billion FCFA on the financial market of the UMOA




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The State of Burkina Faso, through its General Directorate of the Treasury and Public Accounts, raised on October 6, 2021 on the financial market of the West African Monetary Union (UMOA) an amount of 43.746 billion FCFA (65.619 million euros) at the end of its 5-year and 7-year Treasury stimulus bond issue (ORD), organized in partnership with UMOA-Titres based in Dakar.

Launched by UMOA-Titres 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 individuals and legal entities 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 the performance before the health crisis. 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, it was listed 128.126 billion FCFA while the issuer requested 40 billion FCFA. This gives a coverage rate of the amount put out to tender of 320.32%.

Of the total amount proposed by the investors, the Burkinabé Public Treasury retained 43.746 billion FCFA and rejected the remaining 84.380 billion FCFA, ie an absorption rate of 34.14%.

The securities issued will be redeemed on the first business day following the maturity date of October 7, 2026 for 5-year ODRs and October 7, 2028 for 7-year ODRs. Regarding the payment of interest, it will be made at the end of the first year at a fixed interest rate of 5.80% for 5-year ODRs and 6.10% for 7-year ODRs.