Mali has raised 18.79 billion CFA francs in its latest Treasury auction, falling slightly short of its 20 billion CFA francs target as investor appetite varied across maturities.
The government organised the auction on August 20, offering Treasury bills and bonds with maturities ranging from one to five years.
Overall, bids totalled 23.09 billion CFA francs, yielding a coverage rate of 115.47%. However, significant disparities emerged between the instruments on offer.
The 364-day Treasury bills (BAT) proved most popular, attracting bids of 16.92 billion CFA francs.
The marginal rate was set at 8.00%, while the weighted average yield reached 8.50%, reflecting a strong demand for short-term instruments.
In contrast, 3-year bonds (OAT) received 6.09 billion CFA francs in bids, with an absorption rate of 91.80%.
The marginal price was fixed at 92.00%, and the weighted average yield stood at 9.21%, highlighting a more cautious approach from investors for medium-term securities.
Participation in the 5-year OAT was minimal, with only 75 million CFA francs in bids coming entirely from Burkina Faso, underscoring investor hesitancy for long-term commitments amid regional uncertainties.
Geographical analysis shows a concentration of demand in select West African Economic and Monetary Union (WAEMU) countries.
Senegal dominated the BAT subscriptions with 7.07 billion CFA francs, followed by Burkina Faso (3.39 billion) and Ivory Coast (2.00 billion).
For the 3-year OAT, Côte d’Ivoire and Senegal accounted for 1.46 billion and 2.00 billion CFA francs, respectively, while Benin contributed 1.51 billion.
Some WAEMU members, including Niger and Guinea-Bissau, were absent from the auction.
The yields achieved reflect a risk premium demanded by investors, offering attractive returns but also highlighting Mali’s financing constraints in a challenging geopolitical context.
While the Treasury successfully raised 93.98% of its target, the results illustrate the difficulty of securing long-term funding and the selective confidence of regional investors.
The geographical diversification of bidders nonetheless points to continued financial solidarity within WAEMU, even as certain risks temper enthusiasm for longer maturities.
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