Togo aims to raise FCFA70 billion by issuing COVID-19 bonds

Devdiscourse News Desk | Lome | Updated: 29-07-2020 11:00 IST | Created: 29-07-2020 11:00 IST
Togo aims to raise FCFA70 billion by issuing COVID-19 bonds
Representative image Image Credit: Twitter (@IMFNews)
  • Country:
  • Togo

For the second time, Togo will try to raise FCFA70 billion by issuing COVID-19 bonds on the regional financial market, according to a news report by Togo First.

This is after garnering FCFA108 billion by recently issuing the same bonds.

The proceeds of the new issuance will fill the gap in public treasury caused by the fight against the coronavirus pandemic. The issuance of the bonds -fungible Treasury bonds- which have a nominal value of FCFA1 million should close on August 13, 2020.

Just like for the first operation, the securities will mature over three months. They will thus start gaining value on August 14, 2020, and reach maturity on November 12.

Repayment will begin on the first workday after the maturity date. Meanwhile, due interests will be discounted on the face value of the bonds.

Across the West African Economic and Monetary Union (WAEMU), the bond issuance is set to begin on July 28, 2020, with an expected XOF721 billion to be raised.

Earlier on July 23, the European Union had provided Togo 4.9 billion in support of its State budget.

The ceremony took place between Bruno Hanses, chargé d'affaires of the EU delegation, and Demba Ayaovi Tignokpa, the minister of development planning and cooperation.

Also in June, the first facility also aimed at supporting Togo's state budget was injected by the EU into the treasury. The corresponding amount of this facility was 6.3 billion.

In addition to being used to create budgetary space, the monies were to contribute to the economic recovery and solidarity fund. The latter is a fund set up by President Faure Gnassingbé in which 400 billion should be injected.

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