Calixte Nganongo, Minister of Finance and Budget of the Republic of Congo.

The Republic of Congo is about to launch a bond issuance by public offering. This loan of 100 billion FCFA, called "EOCG 6.25% NET 2021-2026", is accompanied by a net interest rate of 6.25%, for a maturity of 5 years. The operation will be carried out on the regional financial market of the Economic and Monetary Community of Central Africa (CEMAC). The enrollment period is scheduled for March 12 to 20, 2021.

The Republic of Congo will dedicate the proceeds of this issuance to the financing of projects included in the Finance Act 2021 which are intended to contribute to the economic and social development of the country, as well as to the partial discharge of domestic debt in order to promote financial stability and growth without oil. The projects included in the Finance Act 2021 that will benefit from this bond are in the areas of road, health, school and energy infrastructure as well as the forest economy.

Despite the structural reforms undertaken in recent years, the Congolese economy, like most economies around the world, has been affected by the Covid-19 pandemic. The deterioration of the international environment and the contraction of national economic activity following the decline in oil production and revenues have had a negative impact on the country's macroeconomic situation.

However, Congo's economic prospects over the next five years are steadily improving. The revival of global commodity demand is expected to sustain and restore economic activity. Real GDP will return to growth in 2021, as improvements in the external accounts and the budget balance are expected.

Moreover, the ongoing domestic debt-clearing operation should boost aggregate demand and improve public-finance management. Thus, the real GDP growth rate is expected to be 4.4% in 2022. The bond issuance launched by the Congolese State will promote non-oil growth while working towards the country's economic diversification, in a context of global reflection on the development of the countries of the continent in the post-Covid-19 period.

"We are in a special period, complex for the economies and societies of the continent, but very interesting since it gives us the opportunity to rethink our ways of acting for the development of our countries. The major turning point we are experiencing must not be ignored. On the basis of the last National Development Plan (2018-2022), the financing that will benefit the Congolese State will enable it, in line with a promising economic situation, to mobilize its forces to improve governance, strengthen human capital and diversify the country's economy. "- Calixte Nganongo, Minister of Finance and Budget of the Republic of Congo.

The Ministry of Finance and the Congolese Budget is accompanied by AXE Capital Corporation for the consulting part; the arranger and leader of the bond operation is ESS Bourse, based in Douala, Cameroon. The nominal value of the bond will be 10,000 FCFA with a two-year capital deferral period. A security mechanism is established through the opening of an escrow account at the Bank of Central African States (BEAC) in order to secure repayments.

Publié le 04/03/21 16:52

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