Auction of Treasury Bonds in the DRC: An amount of 68 billion CDF raised and a high interest rate of 28.50%
The government of the Democratic Republic of Congo (DRC) recently held an auction of indexed Treasury Bonds dated January 9, 2024, managed by the Ministry of Finance. During this financial operation, a total amount of 68 billion Congolese Francs (CDF) was raised, or nearly 26 million dollars.
Three bidders participated in this auction, thus demonstrating investors’ interest in financial products issued by the Congolese government. To guarantee an attractive level of return, the interest rate has been set at 28.50%, which will allow the DRC government to compensate for deficits in public revenue mobilization.
The government’s initial objective was to raise a total amount of 60 billion CDF, but demand exceeded expectations, leading to a coverage rate of 113.33%. This strong demand demonstrates investor confidence in the Congolese economy despite the challenges and uncertainties that persist.
The maturity of this issue of Treasury Bonds is scheduled for July 9, 2024. Bidders will therefore be reimbursed on this date, with the corresponding interest.
This award demonstrates the Congolese government’s desire to diversify its sources of financing and attract national and international investors. Indexed Treasury Bills and Indexed Treasury Bonds represent important tools for the government to mobilize the funds necessary for the development of the country.
In conclusion, this auction of indexed Treasury Bonds in the DRC made it possible to raise a significant amount of 68 billion CDF, thanks to investor interest in these financial products. With a high interest rate of 28.50%, the Congolese government will be able to face the deficits in public revenue mobilization and continue its economic development efforts. This operation demonstrates investors’ confidence in the Congolese economy and the government’s desire to diversify its sources of financing.