The Malian Treasury intends to raise 30 billion FCFA on Wednesday 14 October on the regional market for government securities. UMOA-Titres presents this operation as a simultaneous issue of bills and bonds intended to cover the financing needs of the State budget. At this stage, this is a targeted amount, not funds already raised.
Three lines for different maturities
The offer combines 364-day bills with two bond lines, presented with maturities of three and five years. The bills have a unit nominal value of 1 million FCFA. The bonds have a nominal value of 10,000 FCFA, with annual coupons of 6% and 6.2%.
The announced maturities are 13 October 2027 for the bills, 15 October 2029 for the 6% line and 17 September 2031 for the 6.2% one. The latter already has a security identifier and an accrued coupon in the documentation: its precise maturity should be referred to, rather than counting five full years from the settlement of the operation.
The purchase price will also determine the yield
Offers will be submitted at multiple rates for bills and at multiple prices for bonds. This distinction matters: a bond’s coupon corresponds to the interest it earns on its nominal value. The investor’s yield also depends on the price paid and the time remaining before redemption.
Bids are due to close at 10:30 GMT, or 11:30 in Porto-Novo, with a value date of 15 October. Investors other than approved participants must go through an authorised intermediary. The terms provide for discounted interest on bills and annual payments on bonds.
The auction result will then show the amount actually allotted, the demand and the cost of financing. Abundant bids do not necessarily mean that all bids will be accepted. To gauge the financial success of the operation, the amount raised should therefore be read alongside the rates or yields obtained and the breakdown across the different maturities.