BOAD's Bond Strategy: A Safe Haven Amid Rising WAEMU Debt

The West African Development Bank (BOAD) explained its investment strategy in public bonds within the WAEMU region. This differs from its budget support role, focusing solely on asset management. Despite escalating regional debt, BOAD emphasizes the safety of member country bonds, spotlighting significant increases in Ivorian and Senegalese portfolios.

The West African Development Bank (BOAD) has clarified its financial strategy to investors, detailing its approach to investing in public bonds issued by member countries. This move is distinct from the budgetary support it provides through loans and grants, aimed at optimizing treasury management.

The bank's statement comes as WAEMU members increasingly tap into the regional market for funds. BOAD underlined that, over five decades, no member nation has defaulted on payments, reinforcing the safety of these bonds.

The bank observed substantial growth in its bonds portfolio from Ivory Coast and Senegal, with WAEMU's debt issuance projected to grow significantly. This backdrop highlights the region's heavy reliance on the market for economic stability while managing rising debt ratios.

(With inputs from agencies.)