Saturday, November 20, 2010

Cameroon to issue 200 bln CFA 5.6 pct bonds

YAOUNDE (Reuters) - Cameroon set terms on Friday for its first issue of treasury bonds, saying it will sell 200 billion CFA francs of paper yielding 5.6 percent and maturing from 2012 to 2015.

Finance minister Lazarre Essimi Menye told state radio the bonds would be available for sale to residents and non-residents via an underwriting process on December 15 and 16.

"These securities will be listed on the bonds section of the Douala stock exchange at the latest two months after the close of subscriptions," Menye said.

He said the funds raised would finance projects in the central African state including the Lom Pangar dam in eastern Cameroon to increase power output from downstream hyrdroelectric plants, and to allow construction of new energy capacity.

The issue is being arranged by Citibank, Societe Generale, and Afriland First Bank, he said, adding that the state reserved the right to buy the bonds back at the end of 2013.

The government has already announced it will issue a second batch of treasury bonds worth 150 billion CFA francs in 2011.
Oil-producer Cameroon is seeking to triple electricity output by 2020 in part to pave the way for a slew of energy-intensive mining developments.

Analysts say the shortage of power supply is the main obstacle to growing and diversifying the country's economy, which is expected to expand by a sluggish 3.8 percent in 2011.

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