ARTICLE AD BOX
(Business in Cameroon) - Afriland First Bank announced it has collected CFA10 billion in the first issue of negotiable debt securities (TCN) in the Cemac zone. This is the upper amount of this operation in which the bank was seeking a minimum of CFA2.5 billion, we learned.
According to the results provided by the bank’s top management, 25 investors participated in this fundraising launched on March 15. Motivated by the good performance of this first operation, Afriland First Bank returned to the market on March 28 to raise an additional CFA5-10 billion, again through the issuance of TCN. If the bank has the same luck as the first time, it could obtain another CFA10 billion. Let's recall that Afriland embarked on a TCN operation to raise a total of CFA20 billion on the Cemac market, offering an interest rate of 6.5% and a repayment period of 7 years with a 2-year grace period.
These types of debt securities, which are new to the Cemac zone, include a range of financial instruments. There are certificates of deposit, which are securities with a maximum maturity of 2 years, issued exclusively by credit institutions and deposit and consignment banks; commercial paper, which are securities with a maturity of less than or equal to 2 years that may be issued by all other non-financial companies and governments; and negotiable medium-term notes, which are securities with a maturity of more than 2 years and less than or equal to 7 years that may be issued by all companies and governments. Afriland's last two operations in the Beac market were in the latter category.
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