In December 2006, IFC became the first non-resident institution to issue a bond denominated in West African francs. The XOF 22 billion ($44.6 million) 5-year bond was sold entirely to funds, banks, insurance companies, and pension funds in the eight countries that use the regional currency.
All of the proceeds were invested locally within the countries of the West African Economic and Monetary Union, thereby helping deepen the region's capital markets while also supporting domestic companies that need long-term local currency financing.
The recipients of the bond’s proceeds so far have been Sococim, a cement plant in Senegal, two hotels—Societe Malienne de Promotion Hoteliere in Mali and Societe Burkinabee de Promotion Hoteliere in Burkina Faso—and Tropical Rubber in Cote d'Ivoire.
The West African franc bond market has until now been dominated by government paper, making it difficult for private sector companies to raise funds through bonds or other financial instruments available in many other emerging markets.
IFC hopes its bond will establish a foundation and framework for future issuance, not only by supranationals but eventually other classes of credit-worthy borrowers in the private sector.
The transaction culminates three years of intensive preparation during which IFC received support and approval from each of the eight countries in the zone—Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo.
For more information contact:
Houtan Bassiri
Communications Officer
Johannesburg, South Africa
Tel: +27-11-731-3179
Email: hbassiri@ifc.org
