According to the monthly public debt situation report from the Caisse autonome d’amortissement (CAA) published on July 27, 2026, Cameroon is preparing an environmental (Environment, Social and Governance (ESG)) bond issuance of approximately 400 billion CFA francs (approximately USD 692 million). This bond will be structured with the support of Matha Capital, the African Development Bank (AfDB), the African Trade & Investment Development Insurance (ATIDI), and the Africa Finance Corporation (AFC). This arrangement is intended to reassure a demanding base of international investors on governance. This operation comes as Paul Biya, 93, has not been seen in public since leaving Yaoundé on June 7, 2026. This absence has exceeded, in early August, the previous record of 49 days set in the fall of 2024. On August 2, 2026, Minister of Communication René Emmanuel Sadi stated on RFI that “the president is alive and his return is imminent.” However, no date has been given, nor has the formation of the government promised since December 2025 been announced.
This episode is not unprecedented for bond investors. It is recalled that, in early October 2024, a rumor about the president’s health had already caused three consecutive sessions of decline in Cameroonian dollar-denominated eurobonds. Bloomberg cited managers mentioning “the risk of volatility that would imply a succession crisis in a system where power remains highly concentrated.” On their part, financial rating agencies Fitch Ratings, Moody’s, and Standard & Poor’s (S&P) have been pointing out for several years “the lack of a credible transition plan” as “a factor weighing on the sovereign rating, maintained in speculative grade.”
The creation, through the constitutional reform of April 2026, of a vice-presidential position tasked with completing the term in case of vacancy in the presidency of the Republic, led Fitch Ratings to lower “the risk of disorderly transition.” However, the identity of the holder of the position remains unknown. Furthermore, the recent military reshuffles, including the appointment on August 3, 2026, of a new commander of the Presidential Guard, occur in a climate that several observers consider “unusual in the midst of a prolonged presidential absence.”
Looking ahead, the fundamentals argue for a successful issuance. Indeed, Fitch Ratings anticipates “an average growth of 3.7% over 2026-2027 and a decrease in public debt to around 40% of Gross Domestic Product (GDP), following the success of the January eurobond.” However, the political context, the conclusion of a new program with the IMF, and the clearance of arrears will be closely monitored, just like these macroeconomic indicators. Without questioning Cameroon’s ability to complete the operation, the uncertainty surrounding the head of state could weigh on the final coupon, the price, literally, of governance.
