Cameroon will repay CFA58.75 billion on May 27 under the fourth installment of its 2022-2029 government bond program, according to a statement released May 18 by Louis Banga Ntolo, head of the Central African Stock Exchange (Bvmac).

The repayment includes CFA47 billion in principal and CFA11.75 billion in interest, the regional stock exchange said.

Payments to investors will begin on May 28 through brokerage firms and account-holding banks. Bondholders will receive CFA2,500 per bond, including CFA500 in interest and CFA2,000 in principal repayment.

The seven-year bond, issued with a 6.5% interest rate, allowed Cameroon to raise CFA235 billion. According to Finance Minister Louis Paul Motazé, investors initially offered CFA239 billion, exceeding the government’s original CFA200 billion target.

The strong demand led Cameroon to seek and obtain authorization from the regional market regulator to increase the size of the operation. That approval allowed the government to raise the final amount to CFA235 billion. According to the information memorandum issued at the time of the fundraising, the proceeds were intended to finance road infrastructure, energy projects, drinking water systems, and urban development projects.

The government also allocated CFA4.5 billion to launch reconstruction work in Cameroon’s Far North region, which has been heavily affected by repeated attacks from the Nigerian Islamist group Boko Haram.

Source: Business in Cameroon