Gabon launches sale of treasury bonds worth 175 billion FCFA.
The sales will run until October 28, when they will be closed.
According to a document sent to The Guardian Post Economy Desk by the issuers, purchasers will enjoy a tax-free interest rate of 6.25%; (EDG 6.25% NET 2022-2028).
Purchase is open to all residents in member countries of the CEMAC zone including Cameroon, Chad Republic, Central African Republic, Equatorial Guinea, Congo Brazzaville, and the issuing country, Gabon.
Though each bond costs 10,000; (Ten Thousand) CFA Francs, issuers specified that interested buyers must be ready to buy at least fifty bonds at once; which means that the minimum amount any subscriber is expected to cough out is 500,000; (Five Hundred Thousand) CFA Francs.
“In accordance with the provisions governing Public Offerings on the financial markets of the CEMAC zone, this operation was registered by the Central African Financial Market Supervisory Commission, (COSUMAF) under the number COSUMAF-APE-XX/2022” , the document said.
The Gabonese government is issuing 17,500,000, (Seventeen million five hundred thousand) bonds, whose Amortization is due in five years; with a one-year deferral period; bringing the maturity period to six years.
The issuers explained that the year 2021 was characterised by a resumption of growth, despite the persistent COVID-19 pandemic that occurred in 2020.
The improvement was backed by a revival of private investment, the ongoing structural reforms with the implementation of projects under the Plan of Accelerated Transformation, PAT, supported by a new government with Gabonese economic and financial partners in a national context of easing restrictive measures.
For 2022, they noted that the national and international economic and social context that prevailed during the drafting of the 2022 Amending Finance Law has changed compared with that of the initial Finance Law.
They have said on the international front, geopolitical tensions, notably the outbreak of the conflict in Ukraine, are expected to put upward pressure on oil prices.
Likewise, the fundamentals of a strong post pandemic demand coupled with a constrained supply from OPEC+ (some members do not have the capacity to meet the commitment of increasing by 400,000 barrels/day in March 2022 as agreed), would continue to maintain these prices.
According to International Monetary Fund, IMF forecasts, issuers said global growth is expected to slow to 3.6% in 2022, compared with 4.1% in the December 2021 forecast due to this trying global economic environment.
Inflationary pressures are projected to remain high, fueled by the end of accommodative monetary policies, rising post COVID-19 demand and geopolitical tensions in Europe.
On the domestic front, they were of the opinion that the suspension of restrictive pandemic response measures is expected to galvanize activity in most sectors.
In addition, activity would benefit from the acceleration of investment projects included in the Plan for Accelerated Transformation.
In this way, all sectors would contribute positively to growth, Gabonese officials insisted in the document sent to the press.