Bloomberg News

Niger to Issue $107 Million in Regional Bourse Bond Offer

July 13, 2011

(Updates with comment from analyst in third paragraph.)

July 13 (Bloomberg) -- Niger plans to offer about 50 billion CFA francs ($107 million) of bonds on the Bourse Regionale des Valeurs Mobilieres to raise funds for infrastructure and renovations in the capital, Niamey, said Jean-Paul Gillet, the bourse’s head.

The notes will yield between 6.5 percent and 7 percent, with maturities of between three years and five years, Gillet said in an interview in Abidjan, Ivory Coast’s commercial capital, today. It will be the first time Niger raises money through the bourse, he said.

The rate is “unlikely to generate some international appetite” amid concern over Niger’s balance of payments and low levels of volume on the market, known by its acronym BRVM, said Samir Gadio, emerging-markets strategist with Standard Bank Plc. “Besides, Eurozone-based investors can now buy high-yielding and relatively liquid bonds from peripheral European countries,” he said in an e-mailed note to clients.

The Abidjan-based market, which lists stock and debt from eight West African countries, conducted transactions worth 30 billion CFA francs in the first half of the year, Gillet said. It targets 100 billion CFA francs for 2011, the same as a year earlier. Volumes are increasing “little by little,” he said.

The BRVM relocated to Bamako, Mali, in February amid a violent post-election stalemate that largely halted the economy of Ivory Coast, the world’s top cocoa producer. Trading resumed in Abidjan in May.

--Editors: Emily Bowers, Philip Sanders.

To contact the reporter on this story: Olivier Monnier in Abidjan via Accra at ebowers1@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.


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