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The Cameroon launches into the international financial market

  1. pikapika

    1,624 Posts.

    Hi all,

    If the worst comes to the worst, will the Cameroon Gov't just watches its valuable resources stuck? Will this be another funding option for our rail?

    Cheers.

    Pikapika


    The Cameroon launches into the international financial market


    February 12, 2015 Josiane TCHAKOUNTE National - Economy

    The state is preparing to mobilize 750 billion F on the international financial market. The mandate letter for raising this funding was signed Tuesday in Yaoundé.

    To finance its investments, the State of Cameroon has taken a new step in mobilizing resources. The international financial market. The desired amounts to 1.5 billion US dollars, equivalent to 750 billion F. The money is to refinance the National Refining Company (Sonara) to partially finance the three-year emergency plan and some development projects. For the realization of this international bond issue, the State of Cameroon (represented by the Ministry of Finance) on Tuesday signed in Yaounde mandate letter relating thereto. Thus, according to Enabling Decree of the President of the Republic of 06 February Alamine Ousmane Mey, Minister of Finance (Minfi), has signed the relevant documents with the CEOs of General Cameroon Society (CMS), Jean-Philippe William and Standard Chartered Bank, Mathieu Mandeng. "We are co-lead with Standard Chartered Bank, which means that it is we who will organize the show on the international markets. This issue will be mainly from US, European and Asian investors. We intervene directly in the program by itself, we organize and we are sure to find investors, "says Dg of the SGC.
    How the transaction will unfold?

    The operation is being prepared is an international bond issue or eurobond. Put simply, a bond like those of 2010, 2013 and 2014 but this time will be internationally. "A more complicated process," according to Jean-Philippe Guillaume. The banker alluded to the fact that the amounts are much higher and that investors are no longer local but international. Now, the two co-leaders and teams Minfi will start drafting all legal documentation that will start the loan. This exercise in structuring the loan that starts next week is the most work. The Minfi has also emphasized during the toast, "we must prepare for 27-hour days."

    What are the chances of success?
    Mobilization proper resources, that is to say the 750 billion F, should be easy. "We will have 750 billion F" provides Minfi responsible for this step which should not last more than a week. The State of Cameroon will on the international financial market with a capital of trust built over the first three bonds made at the national level that have leveraged a total amount of 330 billion F. successfully performed all operations, due to the compliance with commitments by the State. Except that, in the opinion of experts, it will also consider another element, the state of the market. "We know what the state of the markets today. But as the show will take place in a few months, it's hard to know what the market conditions at that time. But if banks like Societe Generale and Standard Chartered have agreed to commit their reputation and their signature on such a loan is that we are reasonably confident of our ability to raise capital, "says the CEO of GSC.

    Why go there?
    It is a financial instrument to which the State has chosen to use. However, the use of international financial market can also be justified by the importance of investments to be made and "saturation" of the national market. Indeed, since 2010, when the state has used for the first time to the capital market to finance its economy, he was joined by other states, including Chad, Gabon and CAR. Capital Applicants multiplying, the offers are progressively dwindled with implications for rates and sales volumes. It was necessary, go to the international financial market.


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