Côte d’Ivoire raises 66 billion CFA francs as investor demand more than doubles target

Côte d’Ivoire raised 66 billion CFA francs ($119 million) on the West African Economic and Monetary Union (WAEMU) public securities market on Aug. 18, exceeding its initial target of 60 billion CFA francs.

Investor demand was more than twice the amount sought, with bids reaching 130.29 billion CFA francs. That translated into a subscription coverage rate of 217.15%, highlighting strong demand for Ivorian government securities.

The Treasury ultimately retained 66 billion CFA francs, leaving 64.29 billion CFA francs of the bids unallocated.

Three categories of securities were offered during the operation, with the three- and five-year bonds attracting a significant share of investor interest.

The average yield stood at 6.48% for the three-year bonds and 7.11% for the five-year securities.

The difference in yields reflects the higher return investors require to commit funds for a longer period.

The results point to continued investor appetite for Côte d’Ivoire’s debt on the regional market, where governments across the WAEMU regularly raise funds to finance their budgets and development programmes.

The 217.15% coverage rate means investors offered more than twice the amount Côte d’Ivoire initially planned to raise, giving the Treasury room to select the most suitable bids.

The operation also comes as WAEMU governments continue to rely heavily on the regional debt market to finance public spending amid significant borrowing needs.

For Côte d’Ivoire, the strong demand provides another indication that its sovereign securities remain attractive to regional investors, although the yields also show the cost of borrowing across different maturities.