Mali raises 44 billion CFA francs in oversubscribed regional bond auction
Mali has successfully secured nearly 44 billion CFA francs through a regional bond auction, significantly surpassing its initial target and reflecting strong investor confidence across the West African Economic and Monetary Union (WAEMU).
The auction, held on Tuesday by UMOA-Titres, the institution managing WAEMU’s regional financial market, saw the Malian government raise 43.999 billion CFA francs—well above the 40 billion CFA francs it had initially sought.
The operation achieved a subscription coverage rate of 153.33%, with total investor submissions reaching 61.33 billion CFA francs.
The issuance included five categories of public securities, ranging from short-term one-year Treasury bills to long-term 10-year bonds.
Investor demand was particularly high for the 364-day Treasury bills, which attracted bids totalling 33.25 billion CFA francs, though the authorities ultimately accepted only 17.31 billion CFA francs for this tranche.
The absorption rate for the one-year notes stood at 52.08%, with a marginal yield of 8.30% applied during allocation.
Longer-term securities, by contrast, saw stronger uptake.
The 5-year and 7-year Treasury bonds were fully subscribed, each reaching an absorption rate of 100%, while the 10-year bonds achieved 91.64%.
The 3-year bonds were absorbed at a rate of 87.89%.
Yield levels followed a traditional maturity curve.
One-year bills posted a weighted average yield of 9.03%, while the 10-year bonds yielded 7.59%. Notably, the 3-year bonds carried the highest yield at 9.33%, suggesting a premium attached to this intermediate-term instrument.
Twenty institutional investors from eight WAEMU countries participated in the auction.
Alongside Mali, which led subscriptions, Côte d’Ivoire played an active role, particularly in short-term securities.
Senegal, Benin, and Togo also submitted competitive bids.
The successful auction is part of Mali’s broader strategy to mobilize funding through the regional securities market to meet public financing needs.
Despite ongoing political and security challenges, the strong demand for Malian debt signals continued investor trust in the country’s financial instruments and its ability to meet repayment obligations.
The newly issued securities carry maturities between July 2026 and February 2035, ensuring a staggered debt profile aligned with Mali’s long-term fiscal planning.
About The Author
