Burkina Faso Treasury Bill And Bond Offering Oversubscribed By 100% At WAEMU Securities Market

Burkina Faso has once again demonstrated its appeal to regional investors, securing CFAF 43.99 billion (€67 million) in its latest issuance on the West African Economic and Monetary Union (WAEMU) public securities market.

The simultaneous auction of Treasury Bills (BAT) and Treasury Bonds (OAT), held on August 12 and managed by UMOA-Titres in partnership with the Central Bank of West African States (BCEAO), initially aimed to raise CFAF 40 billion.

Investor enthusiasm far exceeded expectations, with total bids reaching CFAF 80.6 billion, a coverage rate of 201.52 per cent. In a move reflecting cautious debt management, authorities opted to absorb just over half of the offers, resulting in a 54.59 per cent absorption rate. The issuance featured a 364-day T-Bill alongside 3-year, 5-year, and 7-year bonds, designed to attract a variety of investor profiles.

Breakdown of the results shows the 364-day T-Bill bringing in CFAF 7.71 billion at a marginal rate of 7.08 per cent and a weighted average yield (WAY) of 8.14 per cent. The 3-year bond accounted for CFAF 17.6 billion (marginal price: CFAF 9,205; WAY: 8.38 per cent), the 5-year bond raised CFAF 6.89 billion (marginal price: CFAF 9,120; WAY: 6.64 per cent), and the 7-year bond secured CFAF 11.78 billion (marginal price: CFAF 9,000; WAY: 7.81 per cent).

Domestic investors played a leading role, contributing 68.03 per cent of the total funds, nearly CFAF 30 billion. Economists view this as a sign of confidence in Burkina Faso’s sovereign signature and repayment capacity.

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