Cameroon and Gabon compete on the BEAC market

The government securities market of the Bank of Central African States (BEAC) will host on October 29, 2014, for the first time since its launch in December 2011, two tender securities sessions issued on the same day by two different countries which are Gabon and Cameroon, the two main leaders of the capital market.

In the statement posted on the website of the BEAC, both countries will each attempt to mobilize 10 billion CFA francs, through the issuance of treasury bills amounting to 13 weeks for Gabon and 26 weeks for Cameroon.

Competition on both titles will be more severe that 9 out of 11 banks licensed as specialists value Treasury (SVT) in the Republic of Gabon are also among the 13 primary dealers authorized for the same operation by the Republic of Cameroon.

In light of past performance of the two countries in this market, Cameroon securities are generally better rated than Gabon, and it should still remain the same at the end of the double auction of 29 October especially since, officially, 85% of subscriptions to shares issued in this market are the result of economic institutions or operators of Cameroon, which claims 40% of the industrial fabric of the entire CEMAC zone to which also belongs Gabon.