First Quarter of 2026: Gov’t’s treasury bonds sale to hit one trillion FCFA.

According to the Minister of Finance, Louis Paul Motaze, the government is negotiating with the African Development Bank, AfDB, and the African Trade & Investment Development Insurance, ATIDI, on the possibility of obtaining a partial guarantee for future international bond issuance. 

He explained that the goal is to improve financing conditions and secure external funding at a time public finances remain under pressure.

After the January issuance of 503 billion FCFA Eurobonds, that were oversubscribed, media reports have it that the government is about to issue an additional tranche to secure another 82 billion FCFA to meet emerging demands.

It is worth recalling that the government initially raised 750 million United States Dollars, USD, about 415 billion FCFA, through a private placement arranged by Citi, JP Morgan, and Cygnum Capital. 

The seven-year bond, which includes a two-year grace period on principal repayments, had originally targeted 600 million USD, but ultimately attracted nearly 1 billion USD, in subscriptions.

Several sources say the strong demand reflects investors’ perception of Cameroon’s credit quality. Even after the deal closed, additional investors reportedly expressed interest in participating.

To capitalise on that momentum, authorities are now preparing an additional 82 billion FCFA placements, also through a private transaction. If fully subscribed, the total funds raised through the operation would reach about 497 billion FCFA.

Some investors are reportedly willing to subscribe to the additional tranche at a lower yield than the 7.79% secured in the initial issuance. The new tranche is also expected to include a cross-currency swap structure.

According to officials, the financing structure reflects a strategy aimed at reducing the effective cost of Cameroon’s debt.

Although the bond’s nominal coupon stood at 10.12%, the government lowered the effective cost to 7.79% through a currency swap, designed to limit exposure to euro–dollar exchange rate fluctuations while taking advantage of more favorable financing conditions in the eurozone.

Officials further describe the arrangement as a mechanism to optimize borrowing costs while managing currency risk.

According to the minister, the funds raised will be used to settle outstanding payments from previous budgets, including payments related to priority government projects, in line with the 2026 Finance Law.

Following January’s oversubscribed issuance, Cameroon is once again testing investor appetite in a market where demand for African sovereign debt appears to be gradually reopening.

If another batch of bonds is issued to raise 82 billion FCFA, then the government would have raised up to one trillion FCFA from money markets during the first quarter of the current fiscal year.

The article was first published in The Guardian Post Edition No:3730 of Friday March 13, 2026