The Beninese Treasury has just raised 55 billion CFA francs on the WAEMU regional financial market, following a Treasury bond (OAT) issuance that generated strong investor demand. This operation allows Benin to strengthen its budget financing while consolidating its credibility on the sub-regional public securities market.

A Successful Operation on the WAEMU Market

On December 26, 2025, the Beninese Treasury, through UMOA-Titres, conducted an auction of Treasury bonds with a target amount of 50 to 55 billion CFA francs on the regional financial market. The operation resulted in the successful raising of 55 billion CFA francs, exceeding the initial target and confirming investor appetite for Beninese debt.

Total bids reached nearly 90.8 billion FCFA, representing an oversubscription rate of approximately 180% of the amount offered, demonstrating the confidence of regional financial players. Of this total, 55 billion FCFA was accepted and approximately 35.8 billion FCFA was rejected, corresponding to an absorption rate of just over 60%.

Characteristics of the Bonds Issued

The issuance consists of Treasury Bonds with maturities of 2 and 4 years, offered on the WAEMU financial market to institutional and individual investors. An attempt to open a 6-year bond line was unsuccessful, revealing a preference among subscribers for shorter investment horizons.

The bonds, with a unit nominal value of 10,000 FCFA, will be issued on December 29, 2025, with repayment due at maturity. Interest payments will be made annually, based on a coupon rate of approximately 5.70% for 2-year bonds and 5.90% for 4-year bonds.

Returns offered to investors

Investors who subscribed to the 2-year bonds will benefit from a weighted average return of approximately 6.23%, while those invested in the 4-year bonds will benefit from an average return of around 6.44%. These return levels remain competitive within the WAEMU region, while reflecting the Beninese government’s perceived controlled risk profile.

The 2-year bond accounted for the majority of the amounts subscribed, with nearly 47 billion CFA francs, compared to 8 billion CFA francs for the 4-year bond. This demand pattern confirms investors’ preference for short- and medium-term government securities, in a regional context still marked by uncertainties.

A signal of confidence for the Beninese economy

By raising 55 billion CFA francs, Benin has secured additional resources to cover its budgetary needs and finance its economic and social priorities without immediately resorting to an increase in the tax burden. This fundraising also strengthens the country’s presence on the regional public securities market, where it stands out as a regular and sought-after issuer.

The strong investor interest in this operation confirms confidence in Benin’s macroeconomic trajectory and the sustainability of its public debt. At the WAEMU level, the issuance contributes to the depth and liquidity of the government bond market, a key tool for financing public policies in the region.