WADB balance part of its debts. Indeed, the West African Development Bank (WADB) will make the payment of annual interest on 26 December 2020 and partial repayment of its bond loan called BOAD 5.95% 2014-2021 for a total net tax amount of 25.046 billion CFA francs (37.569 million euros). This date is to be remembered for policyholders with the West African Development Bank (WADB).

The information was made public through a notice No. 160-2020 /DC /DR/ DG of 3rd December, payment of annual interest and partial repayment of capital.

Bond borrowing

WADB balance part of its debts. For the record, this debt was issued in the form of a bond issue. This loan was intended to enable it to finance itself with investors, called bondholders. Bonds are debt-like financial instruments for the company issuing them. In a bond issue, the issuer and the subscriber sign a bond contract to formalise the loan, which sets the maturity and interest rate. Bonds are debt-like financial securities for the company issuing the securities. During a bond, the issuer and the underwriter sign a bond contract to formalize the loan which sets the maturity and interest rate.

In short, bond borrowing is a source of securities financing that allows any business to finance any type of need in the longer term.

For example, by decision No. 042/2013/CA/BOAD, the WADB Board of Directors had authorized an initial ISSUE of an IPO bond on the West African Monetary Union (UMOA) financial market for an initial amount of 40 billion CFA francs.

The bond price was set at 10,000 CFA francs with an annual interest of 5.95% net of taxes. The funds to be raised were to be used to finance public, commercial and private sector projects in the West African Economic and Monetary Union (UEMOA).

89.53 billion CFA francs had been raised by WADB

In launching the compulsory loan, WADB officials did not expect to reach the amount to exceed it. So it was a pleasant surprise. Having therefore served the Community banking institution to achieve its objectives, it can be said that this bond borrowing was a great success. Especially with results far exceeding the expectations of the leaders of this Community development finance institution. At the end of the transaction, which took place from 1st December to 19, 2014, 89.53 billion CFA francs had been raised by WADB, an additional sum of 49.53 billion CFA francs compared to the initial amount requested. So the gap is quite large.

Since the bond loan represents a debt, it provides for the repayment of interest during the term of the loan. WADB balance part of its debts, however the rate is set at the time of issuance. Whether fixed or variable, it is usually reimbursed per year, after several years. As for the amount lent, it is repayable at maturity according to the terms chosen.

With this in mind, WADB balance part of its debts. It will therefore partially repay its obligation.

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