Despite the effects of covid-19, African countries are required to repay their international debts. This is the case of Benin which, according to the Kori Actu site, will proceed in a few days and more precisely on 29 November 2021 full early repayment and full payment of its bond issues contracted with the Regional Stock Exchange (BRVM). The announcement from the same source was made by the CEO of the financial institution, Dr Edoh Kossi Amenounve, through a press release.
Indeed, TPBJ 6,50% 2018-2025 and TPBJ 2017-2027 are the securities of bond loans contracted by Benin with the Regional Stock Exchange. According to the press release of the structure, these securities, the repayment of which is scheduled on the date of 29 November 2021, mobilized to 233,6 billion CFA including 62,60 billion CFA bond loan "TPBJ 6,50% 2018-2025 " and 171 milliards CFA d’emprunt obligataire par appel public à l’épargne «TPBJ 2017-2027 » avaient permis au gouvernement de soutenir la relance économique du Bénin et de pourvoir faire face aux impacts de la pandémie du siècle, the Covid-19. The Beninese public treasury, according to the press release from the regional stock exchange, "Will proceed on the date chosen, the total early and full repayment of its various bond issues without counting the payment of accrued interest, in accordance with the issuance briefs ".
What is a bond loan ?
Bond borrowing is a form of financing for a state, from a bank, a business or government organization. The borrower issues bonds that investors buy. Interest is paid periodically, while the capital will be repaid on a scheduled date. The use of bond loans makes it possible to obtain financing outside the traditional banking circuit. It is used in particular when the conditions granted by the banks are difficult to meet.. A bond loan can offer a fixed rate or a variable rate remuneration. Since the capital will only be reimbursed at the end of the loan, the interest rate applies to the entire loan.
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