UEMOA: Côte d'Ivoire records a historic issuance of 454 billion FCFA and confirms its role as a benchmark sovereign issuer.

Ivory Coast has reached a new milestone in its strategy to optimize resource mobilization in the regional market. On Tuesday, April 22, 2025, the Ivorian state successfully conducted a simultaneous issuance of public securities, mobilizing a record amount of 454.2 billion FCFA (approximately 790 million USD), following an auction operation covering a wide range of maturities, from 1 to 7 years. This operation, the largest ever carried out by the Ivorian Treasury in the regional auction segment, benefited from an oversubscription of 105.63%, reflecting the strength of the issuer's credit profile and renewed investor confidence.

According to data published by UMOA-Titres, the operation, initially calibrated at 430 billion FCFA, was fully absorbed by the state, consolidating the upward trend observed since the beginning of the budgetary year. The instruments auctioned included a 364-day Treasury bill, three two-year bond tranches, as well as sovereign bonds maturing in three, five, and seven years. The amounts allocated per line ranged from 4 billion to over 132 billion FCFA, illustrating the market's appetite across the entire yield curve.

However, the financial conditions of this issuance reflect a slight tightening of rates in a regional environment marked by increased liquidity pressure. The one-year Treasury bill was issued at a weighted average rate of 7.19%, up from the 6.60% level observed during the previous operation on April 8. The two-year bonds were placed between 7.36% and 7.38%, compared to 6.79% previously. The three-year line reached 7.49% (up from 6.84%), and the five-year line was at 7.64% (slightly above the previous 7.62%). In contrast to this trend, the seven-year bond line recorded a notable decline, with a yield of 6%, significantly down from the 6.79% observed two weeks earlier, indicating a renewed confidence in long maturities.

This exceptional performance occurs in a context where Ivory Coast is strengthening its presence in capital markets. In the first quarter of 2025 and the first week of April alone, the country accounted for nearly 51% of the amounts raised by the eight member states of UEMOA, successfully completed an international bond issuance of 1.75 billion USD, launched its first international bond issuance denominated in CFA francs, and undertook a reprofiling of domestic debt amounting to 450 billion FCFA, contributing to the alleviation of cash flow tensions.

Analysis of the subscriber structure reveals a predominant participation of Ivorian investors, reinforcing the depth of the national market. A marginal contribution was also observed from institutional players in Burkina Faso and Benin, exclusively on the five-year line.

Through this strategic operation, the State of Ivory Coast consolidates its status as a top-tier sovereign issuer and confirms its ability to intervene with agility and efficiency in financing markets. This demonstration of strength enhances the country's credibility and contributes to the deepening of the regional public securities market, with a view to budgetary sustainability and lasting macroeconomic stability.

Source: Agence ecofin, Editorial Team MEPD Web Portal