The Country also intends to leap from 0 to US$ 1 Billion in Sovereign Bond issuance in less than two years.
On December 29, 2011, Cameroon made a scheduled payment of 11.2 billion CFA francs (approx US$ 23 mil), corresponding to the interest payments under the 2011 bond issue of 5.60% net ECMR, 2010-2015. Launched by Cameroon between December 6, 2010 and December 15 2010, the bond was projected to finance thirteen infrastructure projects in the country starting in January of this year. Those projects include a deep-sea port, hydroelectric dams, water distribution pipelines and road improvements.
Further, it appears that The finance ministry of Cameroon plans to issue another 285 billion CFA francs (US$ 557 million approx) worth of treasury bonds in 2012 to fund more infrastructure projects, with the first 20 billion CFA coming up for sale in February.
The first 10 billion CFA of new bonds should be issued on Feb. 9, while another 10 billion CFA will be split evenly between sales scheduled for Feb. 16 and Feb. 23.
In addition to the approx $400mil issuance of 2010-2011, we are fast approaching the US$1 billion cap in sovereign exposure and liabilities in less than 24 months. There is a lot of dissect in light of these developments.
S/ces: Bloomberg, Thomson-Reuters, Minfi (cmr)