Cameroon’s government completed a $550 million bond sale on Wednesday to address domestic debt and boost the local economy, Finance Minister Louis Paul Motaze announced. The bond, sold in London from July 29 to July 31, features a seven-year term and a record coupon rate of 10.75%.
Citigroup Global Markets Limited facilitated the private placement of the bond, as detailed in a Reuters report. Motaze praised the international market’s confidence, noting that it reflects Cameroon’s credibility and investor appeal despite market volatility.
Cameroon’s debt-to-GDP ratio stands at approximately 43.3%, which is below the 70% threshold set by the Central African Economic and Monetary Community (CEMAC). This ratio provides some borrowing flexibility for the country, according to analysts.
The International Monetary Fund recently highlighted that Cameroon faces a high risk of external debt distress. Despite having a sustainable debt level, the country struggles with low and fluctuating exports and weak domestic revenue collection.
Overall, while Cameroon is managing its debt responsibly, its economic vulnerabilities and reliance on external factors pose ongoing challenges.
