The issuance of indexed treasury bonds from the Congolese Government in January 2024 was a real success, with fundraising far exceeding the initial objective. According to a press release from the Ministry of Finance, the total amount raised amounts to 68 billion CDF, an increase of 8 billion compared to the initial objective of 60 billion CDF.
This auction attracted strong interest from investors, as evidenced by the coverage rate of 113%. Three bidders were selected and the government is committed to repaying these bonds with an interest rate set at 28.5%.
Treasury bills and treasury bonds are among the financial instruments used by the Congolese government to mobilize funds in the local financial market. These securities, fully guaranteed by the State, allow the government to diversify its sources of financing and finance certain expenses.
In this case, the treasury bonds have been pegged to the US currency, meaning that their value is correlated to the US dollar exchange rate in the market. This measure aims to guarantee the stability of the value of these financial securities and to attract more investors.
Since their launch in October 2019, treasury bills and treasury bonds have proven their effectiveness as a means of financing for the Congolese government. They not only make it possible to mobilize funds, but also to diversify sources of financing and strengthen the economic stability of the country.
In conclusion, the successful circulation of the Congolese Government’s indexed treasury bonds demonstrates the growing interest of investors in these financial instruments. This also demonstrates the confidence of economic actors in the Congolese economy and the government’s desire to diversify its financial resources.