La République du Cameroun is seeking 125 billion FCFA from investors on the BEAC regional money market.
The government is raising the money through two Treasury bill issues known as Bons du Trésor Assimilables, or BTA.
The larger issue seeks 100 billion FCFA through 13-week bills. The government will repay the money in January 2027.
A second issue seeks 25 billion FCFA through 26-week bills. Repayment is scheduled for April 7, 2027.
Treasury bills allow governments to borrow money for short periods. Banks and other eligible investors provide the funds before receiving repayment with interest.
The October 5 operation will also test investors’ appetite for La République du Cameroun’s short-term debt.
During three Treasury bill issues on August 3, the government raised only 24.2 billion FCFA.
It had sought 40 billion FCFA during those operations, representing a coverage rate of 60.5 per cent.
Borrowing costs were also relatively high during the August operations.
Average yields stood at about 6.71 per cent for 13-week bills and 6.93 per cent for 26-week bills.
These rates suggest that short-term borrowing is becoming more expensive for the government.
La République du Cameroun increasingly relies on the regional securities market to meet its cash needs and finance its budget.
Therefore, the latest auction will show whether investors are willing to provide the full 125 billion FCFA.
More importantly, it will reveal how much the government must pay to secure the funds.
By Lucas Muma | BaretaNews
