CEMAC: Cameroon sources XAF48 bln in the bond market to settle ENEO

CEMAC: Cameroon sources XAF48 bln in the bond market to settle ENEO

(Business in Cameroon) – Cameroon, on March 16, 2022, launched a new fundraising program aimed at raising XAF48 billion on the central bank BEAC’s public securities market. According to the dashboard of operations on the central bank’s public securities market, the country issued 4 and 5-year bonds in its bid to raise the funds.

The 5-year bonds, backed by a 5.25% interest rate, are aimed at raising XAF23 billion while the 4-year bonds (backed by a 4.5% interest rate) are aimed at raising XAF25 billion.

The result of this fundraising operation is not yet available but if successful, the proceeds will be used to settle debts owed to electric utility ENEO. Indeed, in December 2021, the Cameroonian government signed an agreement committing to pay XAF182 billion of debts owed to ENEO. Part of that money was to come from the BEAC public securities market. A first operation was organized on December 15, 2021, to raise XAF70 billion. A second one was scheduled for January 17, 2022, however, it was postponed and finally organized on March 14, 2022.

With the completion of those bond issue operations, ENEO will receive a total of XAF157 billion. After the XAF70 billion it received in December, the electric utility received XAF39 billion again in early March 2022, months after the initial deadline. That XAF39 billion was paid thanks to a securitization operation supported by a banking pool consisting of Afriland First Bank, Société Générale, SCB Cameroun, Commercial Bank of Cameroon, Ecobank Cameroon, and Union Bank of Cameroon.

The remaining debt will then be settled through a cross-debt settlement between the state (through National Hydrocarbons Corporation-SNH), ENEO, and Kribi Power Development Company (KPDC) to the tune of XAF25 billion.


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