The Republic of Congo launches its bond offering!

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In accordance with the announcements of the Congolese Ministry of Finance and Budget, represented by Minister Calixte Nganongo, the Republic of Congo officially launches its “EOCG 6.25% NET 2021-2026 ” bond offering to the amount of 100 billion CFA francs, at a net interest rate of 6.25% and a maturity of 5 years. The securities will be listed on the Central African Market Exchange (BVMAC). The offering period is open from March 12 to March 20, 2021.

The nominal unit value of the 10 million securities will be 10,000 CFA francs with a minimum offering of 50 bonds. A two-year capital deferral period is to be expected, before linear repayment, i.e., payment of one third of the capital each year for three years. The loan will thereby be amortized over five years. A safety mechanism through opening an escrow account at the Bank of Central African States will ensure repayments. 

The Congolese Ministry of Finance and Budget is assisted by the AXE Capital Corporation for consulting. The manager and chief of operations is the company ESS Bourse, with CBC Bourse acting as assistant chief manager. Subscriptions will be received at the offices of investment syndicate member companies in Brazzaville (LCB Capital), in Douala, (ESS Bourse, Upline Securities Central Africa, Financial Capital, EDC Investment Corporation, Société Générale Capital Securities), as well as in Libreville (BGFIBourse, and CBC Bourse).

Through this program, the Republic of Congo affirms its budgetary ambition to establish its financing development, as well as debt stabilization plan. The proceeds will be entirely devoted to these two objectives. It will thereby make it possible in particular to finance a number of projects under the 2021 finance law, in various sectors crucial to the country’s development. Among these are infrastructure, energy and hydrocarbons, education and forestry economics.

Despite strong State leadership in many developing areas in recent years, the crisis caused by the Covid-19 pandemic has disrupted the Congolese economy. Backed by the country’s promising economic prospects and economic recovery to come, the program is decisive for development projects of the Congolese state and national growth beyond fossil fuels.

“We are proud to launch this bond offering. This will directly serve our country’s development, while promoting local savings, showing the vitality of CEMAC, the Economic and Monetary Community of Central Africa’s regional market. The horizon is brightening for the Republic of the Congo, thanks to the coming rebound of the international economy, as well as to the work of the government, which through sustainable and prudent management, ensures the stability of the country’s finances.” – Calixte Nganongo, Minister of Finance and Budget of the Republic of Congo.”

In accordance with the provisions governing the public call for savings within the CEMAC zone, the information document was registered on February 17, 2021 by the Central African Financial Market Surveillance Commission (COSUMAF) under number COSUMAF- APE-01/21. This information document will be delivered or sent free of charge to any subscriber, buyer, or potential investor, or to any person who requests it, within the limit of available stock.

Source: African Media Agency and Republic of Congo

TOA Correspondent

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