(Updates with comment from Kone in fifth paragraph.)
Sept. 14 (Bloomberg) -- Ivory Coast received 60 percent more subscriptions for five-year bonds than it offered, accepting all of the bids as the West African nation aims to restore its conflict-damaged economy.
Investors sought 160.3 billion CFA francs ($334 million), more than the 100 billion francs offered in the sale that started Aug. 29 and ended on Sept. 12, Adama Kone, director general of the country’s Treasury, told reporters today in Abidjan, the commercial capital.
Ivory Coast, the world’s biggest cocoa producer, is emerging from a violent political crisis that lasted nearly five months and was sparked by a disputed election in November. The country’s economy is expected to contract 5.8 percent this year before growth of 8.5 percent in 2012, according to the Finance Ministry.
The high demand in the bond offer shows “the confidence of the financial community in Ivory Coast and in its recovery and reconstruction policy,” Kone said. “It’s a sign of a progressive return to normality.”
Most of the investors are West African banks, with each country in the sub-region taking part in the offer, he said. Part of the funds, 61.2 billion francs, will be used to pay another debt that matures tomorrow, Kone said. The remainder will be used for the country’s budget, he said.
Damage to the economy caused by the impasse forced Ivory Coast to ask for a reassessment of $2.3 billion of Eurobonds after it missed two coupon payments on the debt in January and June.
--With assistance from Olivier Monnier in Abidjan. Editors: Emily Bowers, Alan Crosby.
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