The Quarterly newsletter of WAMU Government Securities Market · AUT Newsletter N°01/2016 -...

NewsletterAUTN°01/2016 - February

GETTING TO KNOW AUT

QUARTERLY THEME

OVERVIEW OF THE REGIONAL AND INTERNATIONAL MARKET

The Quarterly newsletter of WAMU Government Securities Market

Agence UMOA-Titres

2

Page 3 : Editorial

Page 4 : What is AUT about?

Page 5 : Quarterly theme

Page 6 : 2015 results and 2016 outlook in a snap shot

Page 8 : Overview of the regional and international market

Page 9 : Debt and public finance of WAMU States

Page 10 : Debt capital market

Page 16 : News

Page 18 : Photo Album

Page 20 : A bit of humor - key future dates

Agence UMOA-Titres, is a regional agency supporting the issuance and management of Government securities in the WAMU area, and has been tasked to assist the Member States of the Union in raising financial resources at a reasonable cost.

Information, transparency and good governance are key elements to assess the quality of an issuance policy in the new context of implementation of WAMU reforms to modernize and develop the debt market in the sub-region.Agence UMOA-Titres, is pleased to present its first issue of the quarterly newsletter, with the goal of popularizing concepts of WAMU Government securities market and promoting its expansion

TABLE OF CONTENTS

3

Editorial

It is with great pleasure that I celebrate with you the advent of the first issue of Agence UMOA-Titres newsletter known as «AUT Newsletter». This

communication tool has been designed with a view to sharing our vision and our experience in the field of Government securities market in the WAMU area. This first issue outlines the full stock of our activities during the last quarter of 2015 as well as the perspectives on the first quarter of the year 2016 with a particular emphasis on the advent of Primary Dealers designated as partners of National Treasuries.

This issue is also about sharing with you the vision of one of the founders of the Agency, in the person of its Advisory Board President.

This issue being the first of 2016, it is important we pause to take stock of major activities undertaken by Agence UMOA-Titres to date, in order to consider future actions for this New Year. As a reminder, the Agency is tasked to support WAMU Member States in raising financial resources necessary for the financing of their development policies at a reasonable cost. Thus, from its inception in March 2013 and throughout 2014, the Agency has made it a point of honor to take charge, in a progressive manner, of the material process of issuance and to understand and identify the needs of WAMU Member States through promotional tours. In 2014, 3691 billion was raised globally in behalf of WAMU Member States of which 2 516 billion CFA FRANCS from market auctions.

Similarly in 2015, Agence UMOA-Titres supported Member States in the issuance of 3 889 billion CFA FRANCS of which 2 764 billion CFA FRANCS from invitations to tender. In addition, there were improvements, firstly, in the issuance process, notably in the assimilation technique of, the publication at the beginning of each quarter of a detailed issuance schedule for a targeted period, the capping of the volume held by the National Treasuries, the introduction of 3-year In fine bonds and secondly in terms of information and monitoring of securities portfolio that resulted in the introduction of the cumulative pre-issue interest Note in behalf of investors and the codification of securities.

Finally, the year 2015 marks the strengthening of the issuance regulatory framework with the entry into force in September 2015 of new instructions, one relating to the procedures for auction sales of bills and Treasury bonds and the other to account intermediaries. This new framework thus puts an end to paper submissions and marks the dematerialization of public debt issuance process as of January 2016.

Hence, 2016 will be marked with the seal of challenges facing the development of Government securities market. Indeed, beyond the consolidation of 2015 achievements, this year will be devoted to the operationalization of Primary Dealers and to the onset of major projects such as the notation of the States, the redesign of the Note of the National Treasuries Information to investors, to name but a few.

Let me seize this opportunity to express my appreciation to the Advisory Board as well as to the Supervisory Board of the agency whose very useful comments and suggestions have enabled us to achieve the above results. To all our partners, I reiterate our determination to strengthen the already sealed partnership by fully respecting our commitments to making government securities market, a reliable source of funding and investment. I am also pleased to congratulate all the staff of the Agence UMOA-Titres, who, through their hard work and determination to excel, are addressing major challenges as they contribute to improving the public debt market. A year ends, another begins. On my own behalf and on behalf of all my colleagues, kindly accept my warmest wishes for the New Year. I hope joy and peace fill our hearts throughout the year. I wish your families good health and prosperity. May our daily motto be excellence, commitment to schedules and result based working approach. As I wish you all the best, I urge you as well to continue consolidating gains for the regional capital market to meet the best international standards.

Happy New Year 2016 !

Adrien DIOUFDirector of the Agence UMOA-Titres

4

The Governor of the Central Bank of the West African States, Mr Tiémoko Meyliet Kone, is the man behind this major innovation known as Agence UMOA-Titres. He is also the President of the Advisory Board.

Flashback on what led to the creation of the Agence UMOA-Titres.

The reasons are related to the context in which the regional capital market was established as one of the main sources of financing for Member States.

During the modernization of Member States financing instruments, capital markets were identified by the authorities of the Union as a source of financing for development to focus on. Indeed, the West African Monetary Union suspended in 1999 the recourse of Member States to the direct support of the common issuing Institution, the Central Bank (BCEAO), in favor of promoting the capital market.

The creation of a management and issuing institution of Government securities within WAMU.

From the foregoing and after the first phase of its development, which lasted more than a decade, the market had to undergo reforms to cope more efficiently with the changing financing needs of the Union.

Moreover, one of the objectives was to energize the market of Government securities with the development of an active secondary market, among others, to deal with more growing financing needs of Member States economies. Thus, the creation of the Agence UMOA-Titres is in response to this need.

First appraisal of the Agence UMOA-Titres after nearly three years of existence and prospects for 2016

The issuance of public debt of WAMU Member States has experienced a significant development, both in terms of the volumes issued and the diversification and innovation of offers. On the other hand, there is better coordination between issuance of Member States and actions to promote Government securities.

Finally, the Agency is recognized as being an actor in the service of States on all issues relating to the capital market. From these findings, it appears that the direction taken is good.

A number of flagship projects are going to come to fruition in 2016 including the operationalization of Primary Dealers. The latter, selected among financial institutions and brokerage firms, will be privileged partners of the States and the central actors in the regional market. Their advent will be decisive in the maturation of the market, the acceleration of reforms and the promotion of a more inclusive and secure issuance environment.

Tiémoko Meyliet KONÉ

WHAT IS AUT ABOUT?

5

For economists, a market is a place where supply and demand of a good or a service meet and where transactions are carried.

A market may be governed by laws and established rules and can be classified into two distinct parts, the primary market where financial assets are issued and the secondary market where these assets, once issued, are traded.

In this article, we will focus on the ‘new market’ or primary market.

The above definition of a market involves: a good (or service), a buyer, a seller and establishments laying down rules and ensuring the proper functioning of it.Property is a financial asset defined as a security (contract) that will generate income during a given period and in line with a mechanism known in advance. In WAMU, these securities are of two types, Treasury bills and bonds. The main difference lies in the life expectancy of these securities.

While the Treasury bills are loans of maturity up to two years, Treasury bonds are bonds whose maturity exceeds two years.

Seller : it’s the State. Indeed, as any economic agent, the State, in a given year, acquires resources thanks to tax collection, collected donations, etc. With its resources, it will have to deal with various expenditures. Where expenditures are greater than expected revenue, the State will have to find the missing money through loans on the capital market and more specifically on a dedicated market segment: the Government securities.

Buyers (or investors): these are the natural and legal persons who will acquire securities. In WAMU, the main buyers of Government securities are banks and insurance companies.

The market: Currently within WAMU, there are, two «places» where borrowers (the States) and investors “meet”.

The first is the regional securities stock exchange (BRVM). There, the States issue T bonds via syndication

at a price known in advance. These resource raising operations are known as public offerings. These are the preferred means to collect the savings of the general public. For this reason, it was essential to create an entity whose mission, among others, is to ensure market rules are established, widely known and respected. The establishment having this mission is the Regional Council for Public Savings and Capital Markets (CREPMF) who plays the role of regulator. Investors wishing to acquire securities on the stock exchange are required to go through an approved intermediary: a brokerage firm.

Furthermore, issued securities being dematerialized, the Central Depositary / settlement Bank (DC/BR) takes care of the transfer of ownership, the conservation of the securities as well as the settlement (in cash) of operations.

The second ‘place’ is the market by invitation to tender where the issuance of States is auctioned, and where the only direct stakeholders are financial institutions. All other investors (natural and/or legal persons) are required to go through the latter to participate in these operations.

At the end of this process, only the best prices offered to the issuing State will be retained. On this segment of the market, the Central Bank of the West African States (BCEAO) plays the role of regulator and of the central depository and settlement Bank. The Organization of auctions is ensured by the Agence UMOA-Titres that also provides an advisory function to the States on matters relating to the capital markets. Lastly, the launch in 2014 of the selection process, among financial institutions and brokerage firms, of Primary Dealers is noteworthy. They will have to promote the secondary market and develop a privileged relationship with the States on the Government securities market.

Some reforms are meant to enable the development of Government securities market, not just the primary market, but also the secondary market. The approval process of Primary Dealers is still in progress in each Member State. The operationalization of these new actors of the capital market is scheduled for 2016.

THE QUARTERLY THEME

The WAMU capital market: actors and establishments

6

2015 RESULTS AND 2016 OUTLOOK IN A SNAP SHOT

1. What assessment do you make of the Agency’s actions ?

Our results are to be assessed first in the light of amounts raised. Since its inception, the volumes of financing mobilized have continued growing and this should continue in 2016. The mobilization of a total amount of 3 071 billion in 2014 including 2 516 billion on the tender market increased respectively to 3 304 and 2 764 billion in 2015.

In addition, the Agency has initiated various reforms, including :

R The development and publication of an annual schedule of public securities, with a quarterly update. This fulfills a need for greater predictability for investors, which has increased with the discipline observed by issuing States as per amounts raised through invitations to tender. The publication of a unique schedule for all the Member States of the Union also strengthens the regional character of the Government securities market;

R The introduction of the assimilation technique adopted by the Member States of the Union on recommendations of the Agency, in order to better structure public securities. Similarly, the Agency is working on the standardization of instruments notably through the promotion of bullet loan;

R Dissemination of information to all the market actors with updates on public securities posted on online (www.umoatitres.org), the production of a note on the eve of each invitation to tender aimed at issuers and an index card for investors;

R The ISIN of securities issued by invitation to tender, for the sake of compliance with international standards;

R The organization of roadshows within WAMU and internationally with the aim of broadening the investor base on Government securities;

R Finally the provision of advice and capacity building arrangements destined for public administrations.

2. What are the impacts of these reforms and their contribution to the capital market ?

It is too early to measure the impact of the aforementioned reforms in a market whose maturation will depend on several factors. Generally, they have helped to improve the information level of actors and predictability. By analyzing the 2015 operations compared with previous years, an overall downtrend of rates is observed on our market.

Although it is difficult to impute it to these reforms, it marks, no doubt, a positive dynamic for the States.

3. Have these reforms been accepted by the various market actors ?

Any change is difficult and there is always some resistance; however market actors expressed a keen interest in all these reforms that have been introduced, because most are as a result of a participatory process involving States and investors.

4. What reforms are to be expected in 2016?

A number of flagship projects are going to materialize in 2016. The first concerns the introduction of Primary Dealers. The latter, selected among financial institutions and brokerage firms, will be privileged partners of States on the regional market.

The second objective is the development of yield curves for issuers (rate curve). These are

7

indispensable to measure at any time the price of money for a given issuer.

The third project relates to the financial ratings of States, which comes as an additional asset in the dissemination and analysis of financial information from institutions of reference. These are approved by the Regional Council for Public Savings and Capital Markets (CREPMF).

Finally, thanks to the information system established by BCEAO, the dematerialization of the tendering process will mean an expanded role for the Agency and will serve as a pledge of transparency and efficiency.

All these projects have to be implemented concomitantly taking into account their interdependence for the regional market to run with efficiency.

5. What will be the contribution of Primary Dealers?Their missions will focus on:

R Participation in auctions of Government securities;

R Contribution to securities issuance by syndication;

R Facilitation of the secondary market of Government securities;

R Promotion of Treasury values ;

R The provision of services of advice and information to the National Treasuries in connection with the Agence UMOA-Titres.

Their advent will be decisive in the maturation of the market, the acceleration of reforms and the promotion of a more inclusive and secure issuance environment.

6. How do you see the development of the market?

The market prospects are good for issuers as rates are on a downward trend. With regard to investors,

the multiplication of operations creates new opportunities, new activities and new professions, which arise in this context. Thus for 2016, we hope to exceed the achievements of 2015 and open a new era for our regional market.

7. Do you consider it appropriate that some Member States have recourse to the international market?

Resorting to the international market is a logic of diversification of the investor base and reduction of the debt cost. It also facilitates an international presence of the States and thus improves their visibility and credibility.

Therefore, in determining the appropriateness of such an approach, assessing the context of these operations is necessary as that will be decisive in gaging costs and risks.

Financing the States is an international market open to all stakeholders and winners are those offering the most appropriate solutions. I prefer using the term solution because the cost of a resource is assessed in light of its direct financial cost, risk of exchange, risk of refinancing, and the duration of the loan; in short in light of resource adequacy to needs and objectives.

8. By and large, does not a sustained recourse to the market come with the risk of over-indebtedness of the States?

No, as the risk of over-indebtedness is not bound to a type of debt and therefore not specific to the capital market. One can be over-indebted without even borrowing a coin on capital markets. This is a question to be addressed more comprehensively with monitoring of the debt in its entirety. To that end, rigorous monitoring is exercised by the Member States themselves with the support of development partners. It is in this light that the Debt Sustainability Analyses (DSAs) or the Medium Term Debt Management Strategy (MTDS) can be understood, which are undertaken regularly including the control by national parliaments and various control bodies.

8

REGIONAL ENVIRONMENT

INTERNATIONAL ENVIRONMENT

OVERVIEW OF THE REGIONAL AND INTERNATIONAL MARKET

R Global moderate economic growth, marked by a slowing to 3.1% in 2015 compared with 3.4% in 2014. However, a slight acceleration is expected in 2016 to 3.6%, driven mainly by the more significant recovery of developed countries’ economies. In the euro zone, it will be 1.5% in 2015 and 1.6% in 2016. In the United States, growth is expected at 2.6% in 2015 and 2.8% in 2016.

R The decline in oil and other commodity prices should push down overall inflation, so in 2015 and 2016, inflation in Europe is provided for respectively at 0.2% and 1.0%; in the United States at 1% and 1.1% and in China at 1.5% and 1.8%.

R The euro weakened 0.7 per cent against the US dollar during the third quarter of the year 2015. This trend continued in the fourth quarter and should continue in 2016, particularly if discrepancies in the directions of monetary policy on both sides of the Atlantic are widening.

R The European Central Bank (ECB) has continued its program of quantitative easing, which began in March 2015 to buy public and private assets on the secondary market. It also maintained key interest rates unchanged.

R In December 2015, the FED raised its key rate by 25 basis points to 0.5 percent; thanks to progress against objectives for inflation and employment (unemployment rate remained stable in December at 5%, but a decrease of 0.6% over the year).

R In August 2015, capital markets experienced strong volatility related to concerns about growth in China and the conditions of emerging markets. The drop registered in the beginning of 2016 on the Chinese exchanges combined with the contraction of its economy, appears to confirm the downturn of the second largest economy in the world, whose economic growth is likely to be below 7% in 2016

R In sub-Saharan Africa, economic activity has significantly weakened this year in connection with the decline in commodity prices and the deterioration of international financial conditions; growth of 3¾ % in 2015 and 4¼ % in 2016, compared with 5% in 2014 (IMF) are expected.

R Economic growth in the WAMU area should be more vigorous compared to the other countries of sub-Saharan Africa. It should be at 6.6% in 2015, identical to its 2014level.

R The Union has recorded an inflation rate of 1.5% year on year to end September 2015. This development is basically linked to the progression of prices of food products.

R With the continuing decline in the price of oil and commodities, the inflation rate in 2015 is expected at 1.0%.

R After a steady rise in prices since the beginning of the 2000s, the bullish cycle that has been following commodity for a decade, seems to have ended. During the third quarter of 2015, world prices of crude oil, cotton, rubber, palm oil, palm kernel oil, coffee and gold continued their downward trend. On the other hand, prices of other raw materials exported by the Union registered an increase, including cocoa and cashew because of strong world demand for these products

9

DEBT AND PUBLIC FINANCE OF WAMU STATES

R The rate of overall debt in the Union increased in 2015, from 38.9% of GDP in 2014 to 40.9%. This increase should continue in 2016 to 41.5% of GDP. However the pace of debt growth relative to GDP,

should significantly slowdown in 2016, an increase expected of about 1.5 %(2% of the GDP) from 2015, year during which the debt level in the Union accelerated close to 5%..

R In 2015, half of the Member State economies are expected to experience a global budget deficit as a percentage of the GDP higher than the community threshold of 3%. In 2016, six (6) out of eight (8) countries are expected to experience such. The overall deficit in the Union should therefore remain above 3% between 2014 and 2016, due to the increase in public expenditure in connection with the dynamism of the public investment in infrastructure.

R The Member States debt structure shows

that foreign debt represents the largest share of the Union’s total debt and its proportion tends to increase in the debt portfolio, despite the increasing recourse to the regional capital market for financing fiscal deficits.

R However, with the constant development of the regional market, the ratio between external debt and domestic debt of some countries of the Union seems to be stabilizing and should in some cases decline in 2016.

36,1

32,2 33,4

47,6

41,7

45,9

61,9 60,2

41,5

0

10

20

30

40

50

60

70

Benin Burkina Faso Ivory Coast Guinée-Bisseau Mali Niger Senegal Togo WAEMU

WAEMU Pulic Debt (Percent of GDP)

2014 2015 2016

0

1

2

3

4

5

6

7

8

9


%G

DP

Change in WAEMU overall fiscal deficit (including grants)

2014 2015 2016

-10

0

10

20

30

40


Change in Debt to GDP ratio (%)

2014 2015 2016

0

2

4

6

8

10

12


External debt ratio on domestic debt

2014 2015 2016

Sources: Regional Economic Outlook, IMF October 2015

Sources : BCEAO Sources: Regional Economic Outlook, IMF October 2015

Sources: Regional Economic Outlook, IMF October 2015

10

R The issuance schedule at the beginning of the last quarter of 2015 provided a total issuance volume of 930 billion compared with 1180.41 achievements.

R The total debt stock of the market of WAMU Member States on December 31, 2015 was 7 838.32 billion CFA francs, a 8.89% increase compared to end September 2015.

R This increase in the stock is attributed to a net volume of issuance during the 4th quarter of

640.09 billion of which 1180.41 in issuance and 540, 32 in repayments.

R The downtrend of rates observed at end September 2015 has been consolidated during the fourth quarter on almost all points on the curve with the exception of the 5-year maturity.

R Only the October 27, 2015 operation of Benin corresponded to an increase in its 5-year bond issue opened on July 30, 2015, which emerged at a yield of 5.83%, i.e. 2 basis points less expensive than at the opening.

Source: AUTBT: Treasury BillsOT: Treasury Bonds

DEBT CAPITAL MARKET

PRIMARY MARKET

Results of the public securities in the fourth quarter(October - December 2015)

ISSUER VALUE DATE

MATURITY (in years)

MEANS AMOUNT AN-NOUNCED

AMOUNT SUBMITTED

AMOUNT RETAINED

TM TMP COVERAGE RATE

Ivory Coast 10/05/2015 7 Syndication 150 000 156 993 5.93 5.93

Senegal 10/08/2015 3 Invitation to tender 35 000 44 651 38 500 5.49 5.36 116%

Togo 10/09/2015 1 Invitation to tender 30 000 42 745 33 000 4.95 4.63 130%

Ivory Coast 10/14/15 7 Invitation to tender 100 000 143 085 110 000 5.84 5.84 130%

Mali 10/16/15 5 Invitation to tender 35 000 60 855 38 500 5.88 5.79 158%

Burkina 10/21/15 1 Invitation to tender 40 000 51 095 44 000 4.75 4.37 116%

Niger 10/22/15 1 Invitation to tender 35 000 40 900 38 500 5.25 4.84 106%

Benin 10/28/15 5 Invitation to tender 30 000 63 210 33 000 5.86 5.83 192%

Senegal 11/25/15 10 Syndication 50 000 116 286 100 200 6.40 6.40 116%

Ivory Coast 11/04/2015 2 Invitation to tender 50 000 52 251 50 000 5.25 4.48 105%



Ivory Coast 09/07/2010 5 Syndication 150 000 150 000 5.74 5.74



Burkina 12/16/15 5 Invitation to tender 30 000 31 220 30 720 6.32 6.05 102%



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Issuance and payments in the fourth quarter(October - December 2015)

The trend of issue Rate

Exchange rate is calculated on the issue date

RMP: Performance weighted average

4,92

%

4,65

%

5,15

%

5,07

%

5,61

%

6,02

%

6,11

%

5,98

%

6,73

%

4,92

%

4,64

%

5,10

%

5,04

%

5,57

%

6,02

%

6,15

%

5,98

%

6,73

%

4,50%

5,00%

5,50%

6,00%

6,50%

7,00%

3 MONTHS 6 MONTHS 1 YEAR 2 YEARS 3 YEARS 5 YEARS 7 YEARS 10 YEARS 13 YEARS

TREND OF ISSUE RATE RMP end of 2015 RMP end of dec 2015

STATEOUTSTANDING DEBT FROM THE

ISSUED VOLUME DURING THE

REPAID VOLUME DURING THE QUARTER

OUTSTANDING DEBT FROM THE MARKET AS

Variation

Ivory Coast 3 292 467 257 3 502 6%

Guinea Bissau 26 0 0 26 0%

Mali 514 116 40 590 15%

Niger 320 39 45 314 -2%

Senegal 1 552 139 51 1 639 6%

Togo 456 93 57 492 8%

WAMU 7 198 1 180 540 7 838 9%

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SECONDARY MARKET

Transactions trends on securities issued by tender among direct participating financial institutions

Securities issued by tender and traded among financial institutions during the 4th quarter of 2015

7 9 4 5

1 6

3 4 2 7 6

11 16

1

12 16

13 14

29

11 11

0 5 10 15 20 25 30 35

0

30

60

90

apri

l

may

june

july

augu

st

sept

oct

nov

dec

jan

feb

mar

ch

Apr

il

may

june

july

augu

st

sept

oct

nov

dec

2014 2015

Secondary market monthly transactions trends

Nominal (amount in billions of CFA FRANCS) Number of transactions

NOMINAL (MONTANT EN MILLIARDS FCFA)

CI - 6,55% - 8 ans - 29 avril .22

CI - 6,5% - 7 ans - 26 février.22

CI - 5,25% - 5 ans - 09. décbre.16

CI - 5,8% - 5 ans - 16. octobre.19

CI - 5,8% - 5 ans - 26. octobre.19

CI - 6,5% - 7 ans - 29. mars.20

CI - 6,% - 5 ans - 05. août.19

CI - 4,99% - 10 ans - 11. juin.25

BJ - 6,5% - 7 ans - 10. octobre.21

CI - BT - 24 mois - 12. avril.16

CI - BT - 24 mois - 09. janvier.17

SN - 6% - 3 ans - 12. avril.16

SN - 6% - 3 ans - 20. septembre.16

SN - 5,5% - 3 ans - 03 ans. 03 avril.18

SN - 6,25% - 5 ans - 5 ans. 25 mai.17

TG - 6,5% - 5 ans - 5 ans. 18 juilet.19

SN - 6,25% - 5 ans - 5 ans. 10 avril.19

ML - 6,25% - 5 ans - 22. octobre.19

SN - 6,25% - 5 ans - 25. octobre.18

CI - BT - 12 mois - 02. août.16

CI - 6,5% - 7 ans - 07. mars.21

SN - 6,25% - 5 ans - 22. mars.18

BJ - 6,5% - 7 ans - 19. mars.22

TG - 6,5% - 5 ans - 04. mars.20

TG - 6,5% - 5 ans - 27. janvier.17

TG - 6,% - 10 ans - 17. juillet.17

BJ - 6,25% - 5 ans - 31. juillet.20

NG - 6% - 5 ans - 25. février.20

CI - BT - 24 mois - 21 juin.16

0 50 100 150 200

191,6111,1

46,135,2

25,423,0

20,515,0

8,0

6,8

6,4

6,25,55,0

5,0

5,0

3,53,33,0

2,0

2,0

2,02,0

1,5

1,21,0

1,0

0,5

0,4

NOMINAL (amount in billions of CFA FRANCS)

13

Zoom on the 4th quarterVolume of transactions of securities by invitation to tender among direct participating financial institutions

Zoom sur le 4ème trimestre 2015

Volume des transactions sur des titres par adjudication entre institutions financières participantes directes selon la signature de l’émission

1,545 0,459

0,624 0,415 0,442

0,532 0,254

0,214 0,141 0,162

0,058 0,705

0,364 0,171

0,095 0,152

0,276 0,148

0,079 0,026

0,061 0,045 0,067

0,016 0,053

0,034 0,191

0,088 0,004

0 0,6 1,2 1,8

CI - 6,55% - 8 ans - 29.avril.22

CI - 6,5% - 7 ans - 26.février.21

CI -BT - 24 mois - 21.juin.16

CI - 5,25% - 5 ans - 09.décembre.16

CI - 5,8% - 5 ans - 16.octobre.19

CI - 5,8% - 5 ans - 29.octobre.19

CI - 6,5% - 7 ans - 29.mars.20

CI - 6% - 5 ans - 05.août.19

BJ - 6,5% - 7 ans - 10.octobre.21

CI -BT - 24 mois - 12.avril.16

CI - 5,99% - 10 ans - 11.juin.25

SN - 6% - 3 ans - 12.avril.16

SN - 6% - 3 ans - 20.septembre.16

CI - 6,5% - 7 ans - 07.mars.21

CI -BT - 24 mois - 09.janvier.17

SN - 5,5% - 3 ans - 03.avril.18

SN - 6,25% - 5 ans - 25.mai.17

SN - 6,25% - 5 ans - 22.mars.18

TG - 6,5% - 5 ans - 18.juillet.19

BJ - 6,5% - 7 ans - 19.mars.22

CI -BT - 12 mois - 02.août.16

ML - 6,25% - 5 ans - 22.octobre.19

TG - 6,5% - 5 ans - 04.mars.20

NG - 6% - 5 ans - 25.février.20

SN - 6,25% - 5 ans - 25.octobre.18

SN - 6,25% - 5 ans - 10.avril.19

TG - 6,5% - 5 ans - 27.janvier.17

TG - 6% - 10 ans - 17.juillet.17

BJ - 6,25% - 5 ans - 31.juillet.20

Rapport volume/encours

5,0 0,5

13,8

2,0 1,2 0,4

135,2

2,5 3,0

0

30

60

90

120

150

Bénin Burkina Faso Côte d'Ivoire Guinée Bissau Mali Niger Sénégal Togo

Nom

inal

en

mill

iard

s de

FC

FA

T4 2014

T4 2015

5,0 0,5 13,8

2,0 1,2 0,4

135,2

2,5 3,0 0

30

60

90

120

150

Benin Burkina Faso Ivory Coast Guinea Bissau Mali Niger Senegal Togo

T4 2014 T4 2015

volume/stock ratio

14

5

8,5

5

2

1,17301

0,43

24,74

23,40

7,00

1,20

6,07

63,00

2,00

5,00

2,80

2,54

3,00

0 25 50 75

BJ - 6,25% - 5 ans - 31.juillet.20

BJ - 6,5% - 7 ans - 10.octobre.21

CI - 5,25% - 5 ans - 09.décembre.16

CI - 5,8% - 5 ans - 16.octobre.19

CI - 5,8% - 5 ans - 29.octobre.19

CI - 5,99% - 10 ans - 11.juin.25

CI - 6,5% - 7 ans - 26.février.21

CI - 6,55% - 8 ans - 29.avril.22




ML - 6,25% - 5 ans - 22.octobre.19

SN - 6% - 3 ans - 12.avril.16

SN - 6,25% - 5 ans - 25.mai.17

TG - 6,5% - 5 ans - 18.juillet.19

Nominal (amount of billions in CFA Francs ) T4 2014 T4 2015

0,088

0,035

0,040

0,045

0,134

0,004

0,291

0,408

0,162

0,011

0,025

0,508

0,061

0,095

0,038

0,198

0,079

0 0,15 0,3 0,45 0,6

BJ - 6,25% - 5 ans - 31.juillet.20 BJ - 6,5% - 7 ans - 10.octobre.21

CI - 5,25% - 5 ans - 09.décembre.16 CI - 5,8% - 5 ans - 16.octobre.19 CI - 5,8% - 5 ans - 29.octobre.19 CI - 5,99% - 10 ans - 11.juin.25 CI - 6,5% - 7 ans - 26.février.21 CI - 6,55% - 8 ans - 29.avril.22

CI -BT - 12 mois - 02.août.16 CI -BT - 24 mois - 09.janvier.17

CI -BT - 24 mois - 21.juin.16 ML - 6,25% - 5 ans - 22.octobre.19

SN - 6% - 3 ans - 12.avril.16 SN - 6,25% - 5 ans - 25.mai.17

TG - 6,5% - 5 ans - 18.juillet.19

Ratio nominal/stock T4 2014

Debt securities issued by tender and traded among financial institutions in the 4th quarter

15

Rendements des Eurobonds de la Côte d’Ivoire et du Sénégal sur l’année 2015

0,088

0,035

0,040

0,045

0,134

0,004

0,291

0,408

0,162

0,011

0,025

0,508

0,061

0,095

0,038

0,198

0,079

0 0,15 0,3 0,45 0,6

BJ - 6,25% - 5 ans - 31.juillet.20

BJ - 6,5% - 7 ans - 10.octobre.21

CI - 5,25% - 5 ans - 09.décembre.16

CI - 5,8% - 5 ans - 16.octobre.19

CI - 5,8% - 5 ans - 29.octobre.19

CI - 5,99% - 10 ans - 11.juin.25

CI - 6,5% - 7 ans - 26.février.21

CI - 6,55% - 8 ans - 29.avril.22




ML - 6,25% - 5 ans - 22.octobre.19

SN - 6% - 3 ans - 12.avril.16

SN - 6,25% - 5 ans - 25.mai.17

TG - 6,5% - 5 ans - 18.juillet.19

RAPPORT NOMINAL/ENCOURS T4 2014 T4 2015

5

6

7

8

9

5-‐jan-‐15 5-‐fév-‐15 5-‐mar-‐15 5-‐avr-‐15 5-‐mai-‐15 5-‐jui-‐15 5-‐jui-‐15 5-‐aoû-‐15 5-‐sep-‐15 5-‐oct-‐15 5-‐nov-‐15 5-‐déc-‐15

SN2021 SN2024 CI 2024 CI 2028

Yields of Eurobonds of Ivory Coast and Senegal over the year 2015

16

Agence UMOA-Titres held on 3-4 September 2015 in Saly (Republic of Senegal), a workshop on the technical procedures pertaining to the governing provisions for Primary Dealers to facilitate their operationalization.

Primary Dealers are approved credit institutions and brokerage firms. The missions of these future players in the market are to :

R Participate in the auctions of public debt securities ;

R Make Deferred Payments ;

R Participate in the issuance of securities by syndication ;

R Animate the secondary market of Government securities ;

R Promote Treasury values ;

R Offer advice and information services to the National Treasuries and the Agence UMOA-Titres.

This framework for participatory trade brought together representatives of Member State Ministries of Economy and Finance, National Treasuries and the Agence UMOA-Titres.

At the end of the workshop, the participants adopted the operating procedures of Primary Dealers on the regional capital market with regard to organizing :

R Non-competitive bids (ONC) ;

R Meetings of Primary Dealers with Agence UMOA-Titres and the National Treasuries ;

R argeted invitations.

Thus, Primary Dealers, National Treasuries and the Agence UMOA-Titres are called upon to promote a consensual framework of advice, cooperation and consultation with the goal of raising resources on the capital markets, in optimal conditions, to finance development policies of Member States

NEWS

THE MARKET ENRICHED BY NEW ACTORS

17

THE WAMU SECURITIES MARKET OPENS TO U.S. INVESTORS

In the framework of its promotional activities of Government securities and broadening the base of investors, the Agence UMOA-Titres took part in the 3rd edition of the «BRVM Investment Days» in New York on 23 September 2015.

These ‘BRVM Investment Days’ convene actors of WAMU market and investors based in North America and international companies.

As an official partner of BRVM, this edition of the «BRVM Investment Days» was an opportunity for the Agence UMOA-Titres to assert its presence as the

event opens up opportunities for investment in Africa and more particularly in the WAMU area and raising funds from top international investors.

Thus, Mr. Adrien DIOUF, Director of the Agence UMOA-Titres took the floor in a Market Place (promotion of Government securities workshop) on the theme: «Local sovereign-debt market: opportunities and challenges».

Adrien Diouf (AUT) - Habib Thiam (BCEAO) - Babacar Cissé (DDP) - Stanislas Zeze (Bloomfield) - Jaimín Patel (Bloomberg)

18

Mr. ABOU TOURE, DEPUTY DIRECTOR OF AGENCE UMOA-TITRES APPOINTED DIRECTOR GENERAL OF BANQUE DE L’HABITAT DE CÔTE D’IVOIRE (BHCI)

The 4th regular session of the AUT Board was heldon 7 December 2015 in Abidjan (Ivory Coast)

PHOTO ALBUM

The entire AUT team sends its warmest congratulations on his appointment and would like to seize the opportunity to thank him for his enabling contribution to the development of the Agency.

19

Workshop of managing directors of WAMU national Treasuries, on 7 December 2015 in Abidjan (Ivory Coast)

Agence UMOA-Titres at the African Investors, 25 September 2015 in New York (USA)

A BIT OF HUMORWhat are the jobs that offer better job security? Meteorologist, Economist and Financial Analyst; their forecasts are often wrong, but they still retain their jobs...

A stock market correction is worse than a divorce... You can lose 50% of your money but must always live with your portfolio...

A conversation of two friends: - «Please can you lend me $ 100?” - “I have only $ 50» the other replied. - «Give it to me anyway, you will still owe me $ 50.”

KEY FUTURE DATES

•15-18 February 2016 : Participation in the 40th General Assembly of the FANAF in Abidjan (Côte d’Ivoire).

• March 9-11, 2016 : Participation in the 2nd edition of the Regional Exchange Conference in Abidjan (Côte d’Ivoire).

Avenue Abdoulaye FADIGA Tél.: 221 33 839 10 10 / Fax : 221 33 839 45 57

Email : [email protected] : www.umoatitres.orghttp://www .umRatitres.Rrg

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