Fatshimetrie: Mobilization of 100 billion Congolese francs to finance public spending
The Democratic Republic of Congo (DRC) is preparing to launch an auction operation on the local financial market for indexed Treasury Bonds. This initiative aims to mobilize a substantial amount of 100 billion Congolese francs, or more than 35 million dollars. This approach, planned for August 13, 2024, is a strategic step put in place by the Government to meet the financing needs of public spending.
The particularity of this operation lies in the interest rate set at 25%. This rate is adjusted in harmony with the key rate applied by the Central Bank of Congo (BCC). This decision aims to guarantee a certain attractiveness for investors, while ensuring financial stability favorable to the country’s economic context.
The choice of an 18-month maturity for these indexed Treasury Bonds demonstrates the Government’s desire to set up a gradual and regular repayment mechanism. Indeed, the principal repayment is scheduled every three months, which provides increased visibility and security to subscribers.
Bidders interested in this operation are invited to submit their bids on the day of the auction, Tuesday, August 13, 2024, at the headquarters of the Central Bank of Congo (BCC) in Kinshasa, at 11 a.m. This auction process is intended to be transparent and open to all players in the local financial market.
Treasury Bonds indexed in the Democratic Republic of Congo (DRC) represent debt securities issued by the Government, guaranteeing repayment in Congolese francs while being indexed to the value of the US dollar at the time of subscription. This indexation constitutes a measure of protection against currency fluctuations, thus ensuring a certain stability for investors.
In 2024, the Government of the DRC plans to issue Treasury Bonds to raise approximately 881.4 billion Congolese Francs, equivalent to $340 million. These funds will be used to finance the country’s public spending. The interest rates offered for these issues are generally set at 10%, with semi-annual payments, thus promoting an attractive return for investors.
In short, this initiative to raise funds through indexed Treasury Bonds demonstrates the Government of the DRC’s desire to diversify its sources of financing while ensuring rigorous financial management. This approach is part of a dynamic of transparency and efficiency aimed at supporting the country’s economic development and ensuring responsible management of public resources.