Cameroon set to pay 120 billion fcfa on 2023 bvmac bond
The Cameroonian state will settle a new installment of its ECMR 2023 multi-tranche bond on June 23, 2026, for an amount exceeding 120 billion FCFA. This information comes from a notice signed on June 5, 2026, by Louis Banga Ntolo, director general of the Central African Stock Exchange (BVMAC). Of this total, 10.7 billion FCFA corresponds to interest payments, with the remainder comprising principal amortizations on certain bond lines. Collection operations at the counters of brokerage firms and account-holding banks will begin the following day, June 24.
Differentiated maturity payments
Unlike a standard repayment covering a single line, this installment combines partial capital repayment and coupon payments across all tranches. Specifically, holders of Tranche A will receive a net coupon of 10,580 FCFA per bond, comprising 10,000 FCFA in principal and 580 FCFA in interest. Tranche B will yield a payment of 5,600 FCFA, with 5,000 FCFA in amortization and 600 FCFA as a coupon.
Tranches C and D, which have longer maturities, currently only require interest payments set at 675 and 725 FCFA per bond respectively. This structure reflects the logic of a bond issued across multiple investment horizons, where subscribers to longer maturities accept delayed capital recovery in exchange for higher yields. The mechanism illustrates the gradual sophistication of bond engineering within the CEMAC zone.
Record operation on the regional market
The initial bond allowed Yaoundé to raise over 176 billion FCFA in 2023, significantly exceeding the initial target of 150 billion. It was Cameroon’s seventh successful bond issuance on the unified sub-regional financial market and the first multi-tranche operation attempted in the sub-region. The formula aimed to widen the investor base by offering a menu of maturities tailored to subscribers’ risk profiles and liquidity constraints.
The issuance context was nonetheless challenging. The Bank of Central African States (BEAC) had embarked on a monetary tightening cycle to curb inflationary pressures, mechanically raising the cost of funds raised by national treasuries. By segmenting its offer, Cameroon gave investors the ability to arbitrate between lower-yielding short-term placements and longer commitments with more generous coupons. The success of the subscription validated this technical bet.
Sovereign credibility and the weight of debt service
For Cameroonian authorities, strict adherence to the repayment schedule goes beyond simple contractual obligation. It sends a signal to a community of regional investors whose decisions shape future fundraising efforts. CEMAC states are increasingly turning to the bond market to finance budget deficits and public investment programs, amid a significantly tighter external financing environment.
The June 23 deadline also highlights the growing role of domestic debt service in Cameroon’s public finances. Repeated recourse to the regional financial market offers a valuable alternative to international donors and eurobonds, but its cost remains closely tied to the monetary conditions set by the BEAC and subscribers’ perception of sovereign risk. Each timely payment strengthens Yaoundé’s creditworthiness and influences the maneuvering room for future Treasury issuances.
Nevertheless, balancing financing needs with the sustainability of interest charges will be a key parameter for upcoming budgets. The operation confirms the central role that the BVMAC has acquired in financing sub-regional states.
