Togolese government raises CFA61.8 billion via bond issuance, aimed at CFA60 billion initially

Public finance

Monday, 12 March 2018 17:24

Togolese government raises CFA61.8 billion via bond issuance, aimed at CFA60 billion initially

(Togo First) - Aiming to raise CFA60 billion with the “TPTG 6.90% 2018-2023” bond it issued between the end of 2017 and the beginning of 2018, the Togolese government was able raise FCFA61.8 billion through this operation which was arranged by Dakar-based CGF Bourse. This was revealed in a press statement available on the web page of the Togolese ministry of economy and finance: http://finances.gouv.tg/fr

The bond issuance was thus extremely successful and its proceeds should be used by the State to pay arrears on domestic debt and finance development projects.

In detail, six million securities were issued. Nominal value is CFA10,000 and annual interest rate is 6.9% tax-free for Togolese subscribers ; the latter is payable on a semester-basis with no grace period.

Let it be recalled that Togo’s government had committed to request for the securities issued to be listed on the Bourse Régionale des Valeurs Mobilières (BRVM), three months after vesting date which was set on January 26, 2018. The goal was to allow those wishing to, to rapidly mobilize funds by selling their securities on the secondary market.

The International Monetary Fund, it should also be recalled, had approved the issuance of this bond. According to the ministry of economy and finance, the institution wishes to support the government “in clearing its domestic commercial debt and boost economic activity through the private sector”.

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