By Ndumbe Bell Joseph Gaston in Douala
The Development Bank of Central Africa States (BDEAC) has issued new bonds to raise the sum of FCFA 78 billion on the Central African Stock Exchange called BVMAC, to mark the end of a 3-year old stimulus package of FCFA 300billion started in 2020 for the creation of a strong economic base in the six partner countries of the CEMAC zone.
This amount, which attracted a surplus of subscriptions was successfully administered by the technocrats of BVMAC, the regulator COSUMAF and concerned financial supervisors to an interest rate of “BDEAC 6% net 2022-2029” and technically explained that the bank is obliged to fulfill its commitments by paying back an annual interest for the period 2022-2029 and that interest will have tax deductions. It was mentioned to be the first bond listing of the BDEAC which both parties acclaim as a mark of confidence to both of them (sides)
At the listing ceremony at the BVMAC headquarters in Douala last Wednesday February 15, the Governor of the Development Bank of Central Africa States Dieudonne Evou Mekou deeply appreciated the enthusiasm, confidence and vision demonstrated by personal and institutional subscribers or investors, the high standards of professionalism of the staff of the Central African Stock Exchange, COSUMAF, regional financial commissions, depositories, brokers and other concerned seasoned administrative personalities and to the DG of BVMAC, who he said deserved special thanks.
The Governor of BDEAC thankedhierarchy for the creation of a regional stock exchange and was amazed by the participation;“Out of an expressed need for resources of FCFA 78 billion, the operations resulted in a subscription of FCFA 110.85.330.000 (One hundred and ten billion eight hundred and fifty-six million, three hundred and thirty thousand over subscription, a 42% hike in relative terms. This is renewed testimony of our institutions.” Evou Mekou declared that the end of the 3- year programme is being followed by another 5- year strategic plan that has already been approved by the board.
On his part, the host, Louis Banga Ntolo, the Managing Director of the Central African Stock Exchange, speaking on behalf of the Board Chair, Henri Claude Oyima, in the presence of the Governor of the Littoral Region Samuel Ivaha Diboua, amongst a bevy of representatives from the Ministry of Foreign Affairs, Central African Financial Institutions, brokers, commissions, business associations, investors, employers’ associations and more, underscored the growing recognitions and the rate of admissions to the list of new entrants as unalloyed testimony to the need to have created a regional digital financial super highway to quicken the mobilization of services and economic development in the states and the private sector within and beyond.
His thanks also went to the President (Governor) of BDEAC and the consortium of arrangers whose professionalism resulted to an oversubscription, just before the 2022 Christmas event. Mr Ntolo reminded the public that stock exchange operations take place every week on Mondays, Wednesdays and Fridays where the bell always rings at 11.00 am.
The General Manager reported that 11.085.633 (over eleven million) BDEAC bonds were registered at the end of this operation and they were given until the end of February to be in the stock exchange quotes but here they were on February 15! A victory to both managements and partnersthat formulated the rate BDEAC 6% net 2022-2029.
He continued that, “indeed by hosting today the 11.085.633 BDEAC bonds listed, this will increase our stock market listed bond lines from 10 to 11 totaling an outstanding amount of our listed debts to FCFA 1,157 billion, an increase of about 9.6% in 24 hours,said an elated Ntolo.
Other peculiarities of this operations or characteristics are that for the first time in the maiden history of the African Stock Exchange, subscriptions were registered from all the six countries that make up CEMAC and beyond notably Togo, Ghana and France. BDEAC will also represent 32% of financial market. “Card holders of the said bonds to feel free to trade them before their scheduled maturity” encouraged the MD BVMAC.
When asked as to what the monies will be used for, the President of BDEAC said there is a huge portfolio in all the sectors of the economy of all the states.BDEAC was described as a listed member par excellence for the confidence shown to it by investors.