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Economy/Cameroon: Authorities float 5 billion FCFA treasury bonds

Treasury bonds - Cameroon, through the Central African States Bank (CASB), has launched new Treasury bonds, totalling 5 billion FCFA, PANA learnt Friday from the financial institution.

The bonds, with a 26-week maturity, will enable the Cameroonian authorities to finance its 2014 budget, worth 3.312 billion FCFA.

It is designed to mobilize 15 billion FCFA on the CASB market which will take the total subscription made since January to 25 billion FCFA.

This is the third such launch in 2014 -- the two first sessions resulted in subscription records of 465 and 510 percent respectively.

PANA reports that 250 billion FCFA of public securities will be released this year on the capital market, including a mandatory bond of 180 billion FCFA planned for June 2014.

Authorities said the latest financing policy would take Cameroon out of the woods and gradually remove it from the debt cycle of international financial institutions.

In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. It is a debt security, under which the issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay them interest (the coupon) and/or to repay the principal at a later date, termed the maturity date.

Pana 15/02/2014