The Cameroonian government announced on Wednesday the successful completion of a $550 million bond sale. The funds will be used to address a domestic debt backlog and stimulate economic growth.
The seven-year bond, offered to investors in London from July 29 to July 31, carries a record coupon rate of 10.75%.Citigroup Global Markets Limited acted as the placement agent for the bond, which was issued through a private placement.
Finance Minister Louis Paul Motaze expressed satisfaction with the bond sale, highlighting the international market’s continued confidence in Cameroon’s economic prospects. Despite challenging market conditions, the country managed to mobilize significant investor interest.
Cameroon’s current debt-to-GDP ratio stands at approximately 43.3%, below the 70% limit set by the Central African Economic and Monetary Community (CEMAC). This provides the government with fiscal space to borrow and invest in the economy.
However, the International Monetary Fund recently cautioned that Cameroon remains at high risk of external debt distress due to factors such as low and volatile exports and limited domestic revenue generation.