Cameroon's government on Wednesday concluded a $550 million bond sale to clear a backlog of domestic debt and stimulate the local economy, Finance Minister Louis Paul Motaze said.
The bond was offered in London from July 29 to July 31. It has a seven-year maturity period and a record coupon rate of 10.75%.
Its issuance was arranged through private placement by Citigroup Global Markets Limited, a background paper seen by Reuters showed.
"Despite volatile market conditions, the confidence shown by international markets once again demonstrates Cameroon’s credibility and ability to mobilise the investor community," Motaze said in a statement.
Leeway to borrow
Cameroon's debt-to-GDP ratio is currently around 43.3%, according to the government.
That figure is below the 70% limit set by the Central African Economic and Monetary Community (CEMAC), giving the country some leeway to borrow funds, analysts said.
The International Monetary Fund said earlier this month that Cameroon remained at high risk of external debt distress, even though its debt level is sustainable, because it has low and volatile exports and weak domestic revenue mobilisation.
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