Cameroon to pay over 120 billion fcfa on 2023 bvmac bond in june 2026
The Cameroonian state will settle a new installment of its multi-tranche bond ECMR 2023 on 23 June 2026, with a total exceeding 120 billion FCFA. This information comes from a notice signed on 5 June 2026 by Louis Banga Ntolo, director general of the Central African Securities Exchange (BVMAC). Of this amount, 10.7 billion FCFA represents interest payments, with the remainder being principal amortization on certain bond lines. Cash collection at the counters of brokerage firms and account-holding banks will begin the following day, 24 June.
Differentiated Maturity Payments
Unlike a classic repayment covering a single line, this installment combines partial principal amortization 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 amortization and 600 FCFA coupon.
Tranches C and D, which have longer maturities, currently only see interest payments set at 675 and 725 FCFA per security respectively. This structure reflects the logic of a bond arranged over multiple investment horizons, where subscribers to longer maturities accept delaying their capital recovery in exchange for a higher yield. The mechanism illustrates the growing sophistication of bond engineering within the CEMAC zone.
A Record Operation on the Regional Market
The initial bond allowed Yaoundé to mobilise over 176 billion FCFA in 2023, significantly exceeding the original 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 region. The formula aimed to broaden the investor base by offering a menu of maturities tailored to the risk profiles and liquidity constraints of subscribers.
Yet the issuance context was not favourable. The Bank of Central African States (BEAC) had embarked on a cycle of monetary tightening to contain inflationary pressures, which mechanically raised the cost of funds raised by national treasuries. By segmenting its offer, Cameroon gave investors the possibility to arbitrate between less remunerative 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, strictly adhering to the repayment schedule goes beyond a simple contractual obligation. It sends a signal to a community of regional investors whose decisions shape future fundraising. CEMAC states are increasingly turning to the bond market to finance their budget deficits and public investment programmes in an environment where access to external resources has become markedly more difficult.
The 23 June installment 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 linked to monetary conditions set by the BEAC and the perception of sovereign risk by local subscribers. Each timely payment strengthens Yaoundé’s signature and conditions the flexibility of future treasury issuances.
However, the balance between financing needs and the sustainability of interest charges will be a key parameter in upcoming budget exercises. The operation confirms the central role the BVMAC has acquired in financing states across the sub-region.
