In this year 2024, the Government of the Democratic Republic of Congo (DRC) announced its intention to borrow a sum of 70 billion Congolese Francs (CDF) on the local financial market, which corresponds to approximately 24.6 million U.S. dollars. This decision, which was communicated by the Ministry of Finance under the signature of Minister Doudou Fwamba Likunde on June 21, is part of a series of operations aimed at strengthening the country’s public finances.
The issuance of indexed Treasury Bonds, with an interest rate of 10% and a maturity of 15 months, constitutes a means for the Congolese government to mobilize resources on the local financial market. These debt securities, denominated in Congolese Francs but repaid in US dollars at maturity, offer local investors an attractive investment opportunity.
The deadline for submitting bids for this auction has been set for June 25, 2024, which leaves little time for interested investors to participate in this operation. The terms of payment of the principal amount awarded, scheduled every three months, as well as the payment of quarterly interest, demonstrate the government’s desire to respect its financial commitments.
Furthermore, the Congolese government aims to raise a total of 881.4 billion Congolese Francs in 2024 through various Treasury Bond issues. These fundraising will help finance the country’s development projects and maintain financial stability despite an uncertain global economic context.
In conclusion, the issuance of indexed Treasury Bonds by the Congolese government represents an opportunity for local investors to participate in the financing of public activities while benefiting from an attractive investment. This approach is part of a broader strategy aimed at strengthening the country’s financial credibility and ensuring its long-term economic viability.