For over a year, the 7-year bonds issued by the State of Cameroon in 2023 have remained particularly popular on the Central African Stock Exchange (Bvmac). Despite persistent purchase offers, their holders have shown little inclination to part with them, a sign of lasting confidence in this security.
Since the trading sessions of January 30 and 31, then February 3, 2025, investors active in Bvmac have struggled to acquire the 7-year bonds of the State of Cameroon issued in 2023. The Official Bulletin of the List (BOC) reveals that 100 securities were sought without any offer for sale being registered. This trend is not new. Since the introduction of this security on the market, on November 23, 2023, its trading volume remains limited. At that date, only 892 securities had changed hands, while the expressed demand reached 1,592 securities. This low trading volume was then explained by the animation of the market by the brokerage firms, and not by a real desire of investors to sell their bonds.
As of the second trading session, on November 24, 2023, no trading took place, despite offers to purchase 700 securities. One year later, the situation remains unchanged: holders of these bonds are adopting a wait-and-see attitude, reflecting their confidence in the valuation potential of this security.
One of the reasons for this reluctance to sell is the stability of the purchase price. Since its introduction to the Bvmac, the 2023-2031 bond has always been trading at 10,000 FCFA, its issue price. At this level, no holder is realizing an immediate capital gain. However, this situation does not seem to dampen investors’ appetite. Many anticipate a rise in the price in the medium term, which justifies their reluctance to sell their securities now. Since the repayment deadline is still far away (set at 2031), they prefer to keep their bonds while waiting for a better valuation on the secondary market.
The 2023 bond issue marks a key milestone in Cameroon’s financing strategy. It is the first multi-tranche bond in the CEMAC zone, offering investors increased flexibility: maturities of 3, 4, 5 and 7 years, with progressive interest rates. This innovation has enabled Cameroon to raise more than 176 billion FCFA, well beyond the 150 billion initially sought. This success demonstrates investors’ interest in Cameroonian sovereign bonds, despite the tightening of sub-regional monetary policy and rising interest rates.
The continued demand for these securities, more than a year after their IPO, illustrates investors’ confidence in the solidity of the Cameroonian government’s commitments. If the trend continues, a revaluation of the security could emerge in the medium term, thus strengthening the attractiveness of the sub-regional bond market.
