The State of Cameroon wishes to mobilize a total of CFAF 220 billion on the money market via the issue of Assimilable Treasury Bonds (OTA). This money will help finalize or carry out projects in four major areas and improve the living conditions of the population.
Projects targeted by this fundraising are the development and rehabilitation of roads (CFAF 63.2 billion), water and energy (CFAF 38.3 billion). Health facilities and other priority health projects such as the health barrier against covid-19 will benefit from 45 billion FCFA. Sports infrastructures will swallow 73.5 billion FCFA out of the 220 billion FCFA to be collected from specialized structures.
This money will be mobilized in three stages: the first phase scheduled for April 8. will be geared towards raising 50 billion FCFA for a maturity of two years (repayments will start in 2022 with 3.5% interest). The second will relate to an amount of 70 billion FCFA for a three-year maturity and 4% interest, redeemable at the end of five years at an interest rate of 5.7%. And the third issue of OTA will mobilize 100 billion FCFA.
Enshrined in the 2020 Finance law which indicates that public securities could be used to finance investment projects of up to 320 billion FCFA, these issues are also part of government’s medium term strategy for the period 2020-2022.
The move to use Assimilable Treasury Bonds follows a second consecutive failure by the state of Cameroon to raise funds through the BEAC debt market.
