From January to the end of September 2024, WAEMU member states raised 6,734.5 billion FCFA on the regional public debt market, compared to 7,760.0 billion during the same period in 2023, a decrease of 1,025.5 billion or 13.2%.
According to the Bceao which provides the information, this decrease results from the contraction in Treasury bond issues (-31.7%), partially offset by the increase in mobilizations in the bond compartment (+15.1%) . Net emissions stood at 1,894.2 billion, compared to 1,976.2 billion a year earlier, linked in particular to the decline in the budget deficit.
At the end of September 2024, explains the Bceao, the coverage rates for the amounts requested by subscriptions stood at 146.9% for bonds and 92.6% for bonds, compared to respectively 154.7% and 124.6% at the end of September 2024. the same period of the year 2023.
In the Treasury bill segment, member states raised 3,522.4 billion, corresponding to 52.3% of the total volume of resources mobilized on the regional public debt market, compared to 3,059.5 billion or 39.4% of total emissions, at the same period of the previous year. Issues with a 12-month maturity were the most requested, during the first nine months of 2024, with a total value of 1,945.3 billion, or 55.2% of the bonds issued over the period, followed by bond issues. maturity 3 months (996.6 billion or 28.3%), 6 months (512.5 billion or 14.5%) and 1 month (68.0 billion or 1.9%).
In terms of the bond compartment, the Public Treasuries raised 3,212.1 billion (47.7% of resources raised on the market) at the end of September 2024, compared to 4,700.5 billion the previous year. In particular, the total amount of bonds issued on the market by auction amounted to 2,132.1 billion (66.4% of total bonds) and 1,080.0 billion (33.6% of total bonds) on the syndication compartment. Bond issues concerned maturities of 3 years (1,197.8 billion), 5 years (1,082.1 billion), 7 years (699.1 billion), 10 years (221.3 billion) and 15 years (11 .9 billion).
-Regarding financing conditions on the public debt market, they have generally tightened during the period under review compared to the same maturity in 2023. In fact, the average cost of resources raised by Member States has increased for most maturities, both in the bill and bond compartments. The weighted average rates for Treasury bills thus increased by 106 bps for maturities of 3 months, 88 bps for those of 6 months, and 118 bps for maturities of 12 months.
These developments could, according to the Bceao, be explained, among other things, by (i) the additional risk premium requested by investors, due to uncertainties concerning the security and socio-political situation in certain States of the Union, and ( ii) the significant exposure of banks to sovereign risks. Overall, exit rates on Treasury bills increased, on average, from 6.12% over the first nine months of 2023 to 7.20% over the equivalent period in 2024.
Adou Faye
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