On July 2, 2025, Burkina Faso raised 38.499 billion CFA francs (approximately 69.3 million USD) on the regional financial market of the UMOA, following a combined auction of Treasury Bills (BAT) for 364 days and Treasury Bonds (OAT) for 3, 5, and 7 years. The operation is part of the country’s sovereign financing strategy, in a regional context marked by market resilience in the face of economic and security uncertainties.
Key figures of the operation:
– Amount requested: 35 billion CFA francs
– Amount received: 40.892 billion CFA francs
– Amount retained: 38.499 billion CFA francs
– Coverage rate: 116.84%
– Absorption rate: 94.15%
– Yields (BAT 1 year): 9.35%
– Yields (OAT 3/5/7 years): 7.23% / 8.48% / 8.34%
– Annual coupons on OAT: 6% / 6.20% / 6.40%
A successful operation, but at a high cost:
The coverage rate of 116.84% reflects a strong investor confidence in Burkina Faso’s sovereign signature, despite a tense macroeconomic context (domestic security, inflation, budgetary pressure). The absorption rate of 94.15% also indicates a real appetite for Burkinabe debt.
However, this confidence comes at a price:
– The 1-year BAT was placed at a yield of 9.35%, indicating a high financing cost in the short term.
– Long-term OATs are also relatively expensive, with yields around 8.4% for maturities of 5 and 7 years, while the coupons paid are 6% to 6.4%, resulting in a discount on the secondary market.
This spread between yields and face rates suggests a significant risk premium demanded by investors, linked to country risk and macroeconomic volatility.
