Cemac: Bdeac now accounts for 30% of outstanding debts listed on Bvmac
The Economic and Monetary Community of Central Africa (CEMAC) is witnessing a significant shift in its financial landscape, particularly in the bond market. The Development Bank of Central African States (BDEAC) has emerged as a substantial player, now accounting for 30% of the outstanding debts listed on the Central African Securities Exchange (BVMAC). This development is a testament to the growing confidence in regional financial institutions and their ability to mobilize resources for economic development.
On August 7, 2024, in Douala, the BDEAC listed 5,476,971 new bonds valued at 54.7 billion CFA francs, positioning itself as a key entity in the regional financial market, second only to the State of Cameroon and ahead of Gabon. This move not only reflects the bank’s robust financial health but also its commitment to contributing to the economic growth of the CEMAC region.
The listing of these new bonds is part of a broader strategy by the BDEAC to animate the sub-regional financial market and enhance its visibility among investors. The bank’s ability to raise substantial funds through the bond market demonstrates its credibility and the appetite of investors for securities that support regional development initiatives.
The BDEAC’s bond issuance aligns with its strategic objectives to finance development projects within member states, including infrastructure, energy, and social development programs. By tapping into the capital market, the BDEAC is leveraging alternative financing mechanisms to complement traditional development funding sources.
This development is a clear indicator of the dynamism of the CEMAC region’s financial markets and the potential for further growth. It also underscores the importance of regional cooperation and integration in achieving economic stability and development. As the BDEAC continues to list its securities on the BVMAC, it sets a precedent for other regional institutions to follow, thereby strengthening the financial architecture of the CEMAC region.
On August 7, Bdeac listed 5,476,971 new bonds. Out of a total outstanding debt estimated at 1,232.2 billion CFA francs, Bdeac now holds 365.8 billion CFA francs of outstanding listed debt or 30% of the debts. This benchmark issuer on the stock market comes in second behind the State of Cameroon, leader with 33.3% of the outstanding amount and ahead of the State of Gabon, third with 23.8% of the total outstanding amount. In the bond compartment, the Central African States Development Bank has already listed 6 lines of borrowing out of the 19 that this market has. It shares this segment with Cameroon, Gabon, Congo and Chad.
On the path to growth
With the registration of this security on the Bvmac, Compartment C of the Stock Exchange is thus enriched with three additional lines of borrowing correlated to tranches A, B and C, thus increasing from 16 to 19 lines. As a result, the outstanding debts listed on the Stock Exchange increased by 54.7 billion CFA francs to reach 1,232.299 billion CFA francs, an increase of 5% in relative value. “The registration of security on the List offers its first-time buyers a secondary market allowing them to sell all or part of the securities acquired before their maturity, to seize other opportunities.
The listing also offers the opportunity to other investors, in particular those who have not been served on the primary market for X or Y reasons, to acquire the securities second-hand at stock market conditions. It also offers institutional investors such as banks to record, for a period set by a Cobac Regulation, the securities acquired in transaction securities with a neutral impact on their financial immobilization ratios. Finally, the listing on the Stock Exchange offers asset managers the opportunity to enrich the products they structure with new underlying assets,” rejoiced the CEO of Bvmac, Louis Banga Ntolo.
Let us recall that the 54.7 billion CFA francs raised under this bond issue will be used to finance the projects of Bdeac’s Azobe 2023-2027 strategic plan. Among other projects, we can cite: the construction of an agro-industrial oil palm complex in Bangui (CAR), the construction of the new Libreville airport (Gabon), the development of roads in the industrial and port zone of Kribi in Cameroon, the extension of the network of X-Oil service stations in Gabon, etc.
