CFA 10b set aside for road construction in Yaoundé

The State has gone for money from the money market of the BEAC emitting fungible Treasury bonds. The cash has been set aside for three ongoing road works in the city of Yaoundé.

The allocation of funds is 3.7 billion for the Yaoundé-Nsimalen Highway; 3 billion for the road in the East of Yaoundé and 3.3 billion for the rehabilitation and development of the Shell Nsimeyong-Biyem-Assi road (lot 2).

A total amount of 10 billion was contracted by the State of Cameroon, last Wednesday, on the money market of BEAC, via the issuance of comparable treasuries (OTA). An operation which, explains that the Ministry of Finances (Minfi), went on well, especially compared with the last one carried out on the same market September 04, 2013.

In addition, the maximum amount announced by Cameroonian public Treasury (10 billion) was largely exceeded in view of the final offer from investors 19,155 billion. That represents a coverage rate of 191,55%. Last September, only four banks on 13 in the SVT network had bid for an amount of 8,011 billion, below the 10 billion that the State was seeking at the time.

Another indicator attesting to the successful holding of this third issue of OTA is the interest rate. Indeed, if the duration remains the same as for the two previous years, the rate of interest, might have been scaled down for this third operation to below 3.75% against 4% for the last.

A situation explained by the quality of the signature of the State which improves with regard to its activities on the markets of issuance of short-term government securities. Indeed, for government securities that ranged over a year, the State borrows below 2%. This positive development noted on the side of investors would also be put to the credit of the reforms undertaken at the level of BEAC and the arrangements on the refinancing of Government securities.

Since 2010, in which the State of Cameroon began to use capital markets to finance its economy, this is the third time that he chooses the issuance of OTA to fund its share in various projects in the budget of public investment.

Projects including the major criterion of choice are based on both physical and financial maturity. For the 10 billion raised last Wednesday, the reimbursement is set at 08 August 2016. To date, the total amount issued by the State via the OTA totaled 33,511 billion F.