Mali : La capitale va lever environ 885 millions de dollars US en 2019 pour financer son développement

Bamako solicited the regional financial market for a bond issue that raised 16.5 billion CFA francs. For 2019, the Malian government plans to mobilize 520 billion CFA francs through the issuance of government bonds intended to finance development projects.

“Given the recent evolution of regional financial market issuance, this operation is a success,” says Siaka Samaké, Head of Banking and Finance division at the Malian Treasury, interviewed by Jeune Afrique . Mali’s bond issue aimed to raise 15 billion CFA francs in the regional financial market. But it finally allowed to reap 57.19 billion, an oversubscription of the order of 381%.

The Malian Treasury, cautious, however, decided to retain only 16.5 billion CFA of raised funds “for two main reasons, namely to contain the financial burden of the State and to respect the commitment of the National Treasures not to not retain more than 110% of the amount requested, “said Siaka Samaké.

“Investor craze”

This is the second time since the beginning of 2019 that Bamako has been soliciting the market via the issuance of public securities. In total, the resources mobilized amounted to 158 billion CFA francs, including 66 billion treasury bills and 91.7 billion bonds. In total, according to the calendar of issues of government securities established for 2019, Bamako aims the lifting of 520 billion CFA francs by December.

For this operation, “Mali obtained the best weighted average price in 2019 (98.74%), and moreover, a security with a maturity of 5 years. In addition the rate of return of 6.73%, is one of the best in the zone. This is proof enough of investors’ enthusiasm for Mali’s securities, “added the head of the Banking and Finance division. This is much better than the last intervention of Mali, last February, and that carried out by Benin on April 18, in the same market, which had already revealed a growing infatuation of investors.

Another factor that explains these good conditions is the loosening of liquidity in the WAEMU regional financial market, which now makes medium and long-term securities more prized than those in the short term.

Financing of infrastructure works
The funds raised will finance the work of the Yanfolila-Kalana-Guinea border section, as well as the paving of the Kolondieba-Zantiébougou road, near the Ivorian border. Other projects whose budgets will be supplemented by this fundraising, the construction of a second bridge in Kayes, or the construction of an interchange and the rehabilitation of the Tour of Africa section.

“The 16 billion are just part of the 520 billion CFA which we intend to mobilize this year, in line with the budget, to finance several investments,” insists Siaka Samaké. These resources will be mobilized through 19 issues of government securities – six consisting of treasury bills and thirteen bonds. A public bond issued with a maturity of 10 years for 100 billion is also planned.

“As of April 25, 2019, out of a forecast of 165 billion CFA francs, Mali mobilized 174.2 billion, representing a realization rate of 105.6%. It should be noted that over the period, investors had proposed 339.7 billion CFA francs to the State of Mali, an overall coverage rate of 205.9%, “also welcomes Siaka Samaké.

In 2018, issuance of government bonds had raised 548.98 billion CFA francs, of which 350.18 billion in bonds and the remainder – 198.8 billion – in bonds. For its 2019 budget, Mali is counting on revenue estimated at 2023.15 billion CFA francs. The GDP growth forecast is around 4.8%, while the country’s overall debt is around 36% of GDP, with an improvement in the budget balance.