ADB partially guarantees Cameroon's Eurobond

The African Development Bank (ADB) and the state of Cameroon will sign an accord of counter indemnity, relating to the partial credit guarantee, for an amount of EUR 500 million which is approximately 327.5 billion FCFA.

According to the Presidential Decree of September 23, 2015, this agreement with ADB is part of the 750 billion FCFA Eurobond guarantee that the government is about to launch on the international market.

As a reminder, on February 10, 2015 in Yaoundé, in accordance with an authorisation decree signed four days earlier by the head of State, the Minister of Finance, Alamine Ousmane Mey, officially gave Société Générale and Standard Chartered Bank a mandate letter allowing them to raise 750 billion FCFA on the international market, for the realization of development projects.

“After the local and sub-regional market, in which Cameroon has respected all its commitments, it is now an issue for us to affirm on the international market. We are confident, because the country has all the assets to succeed this first issuance of Eurobond in its history," said Minister Alamine Ousmane Mey, while giving the government support to the two arrangers of the operation.

Since then, not much has filtered on preparations for this operation to raise funds, allowing Cameroonian public Treasury to rub shoulders with the international capital market for the first time in its history.

However, the recent revelation of the partial guarantee of the ADB reinforces the idea that we are moving towards the road-show of this loan, which is expected to be officially launched in the month of October, announced credible sources.