Professional Space > Fungible Treasury Bills (T-Bills)I Professionals

Fungible Treasury Bills (T-Bills)

Fungible Treasury Bills (T-Bills) are government short-term debt securities issued by way of invitation to tender. A fungible security can be issued, the first time, in form of a fixed size then subsequent issues are matched.

Characteristics of T-Bills

  • Nominal unit: 1 000 000 FCFA (unit amount of each bill).
  • The nominal value (NV), multiple of the nominal unit, corresponds to the amount announced by the Treasury of the issuing State. The Treasury has the option to retain up to 110% of the amount put out to tender if offers are satisfactory.
  • Maturities: 7, 28, 91, 182, 360 days. The due date is expressed in number of days (n).
  • Interest rate (i): fixed.  Interests are deducted from the issuance’s nominal value
  • Basis for interest calculation: by agreement, the basis of calculation for T-Bills is  Exact/360.
  • Interests: interest is payable in advance on value date, calculated on the nominal value (NV) of bills (discounted at the yield rate requested by the investor).
  • Net amount (NM): the net amount received by the issuer corresponds to the nominal value minus interest paid by the issuer. NM = NV (1 − i n/360)
  • Refund: Treasury bills are reimbursed only once at final maturity (bullet redemption).
  • Performance (i’): i′ =  (NV – 1)/NM * 360/n

Who can benefit?

  • Any natural or legal person residing in the Union
  • Non-resident investors through Primary Dealers or banks resident in the Union.

Issuance technique

  • Bills are issued by tender and at multiple rates (requested rates). Auction ensures market transparency and competition.
  • Issues by tender are organized by the WAMU Securities Agency. Notice of call for tenders is launched for each issue of Fungible Treasury Bill. This notice specifies the issuance characteristics as well as bidding practicalities

Subscription terms

  • Fungible Treasury Bills are available at any time on the primary market and the secondary market through Primary Dealers, financial institutions and brokerage firms.
  • The purchase amount is a multiple of 1 000 000 FCFA.


Tax applied to Fungible Treasury Bills is that in force in the issuing State. In general, Treasury bills are exempt from taxes for buyers who are residents of the issuing State.


  • Fungible Treasury Bills offer short-term investment to meet requirements of cash management security (sovereign issuer) and quality (the State).
  • Fungible Treasury Bills offer the investor an optimal risk/return ratio.
  • The remuneration is known and paid in advance to the investor on the acquisition of securities (securities interest).
  • Investment on Fungible Treasury Bills helps to contribute to the cash resources of the State.


  • Treasury bills are traded over-the-counter on the secondary market and are eligible (for those who are eligible) as collateral to access Central Bank refinancing.


Let’s take as example, a 364 day T-Bill.  The first issue concerns the award of the first tranche of a nominal amount of 20 000 million CFA. The second issue comes 6 months later for a second tranche in the amount of 10 000 million. Securities issued during the second tranche have 182 days of residual maturity. Securities issued on both occasions (first and second tranches) are fungible.

First issue : 20 000 millions (20 billion) of 364 days

Amount put out to tender by the Treasury : 20,000 million de CFA

Investors Interest rate (in %) Amount in million CFA) Accumulation
Investor_A 3 3 000 3 000
Investor_B 3,15 1 000 4 000
Investor_C 3,15 1 050 5 050
Investor_D 3,4 5 000 10 050
Investor_B 3,65 1 750 11 800
Investor_E 4 2 500 14 300
Investor_F 4 300 14 600
IInvestor_C 4,15 3 000 17 600
Investor_H 4,35 400 18 000
Investor_G 4,55 2 000 20 000
Investor_I 4,75 400 20 400


Results of the auction on the first issue

Amount (in millions of CFA) 20 000
Marginal rate 4,55%
Weighted average rate 3,67%
Interest paid by Treasury (in million CFA)

Net received by the Treasury (in million CFA)


19 258,50

Price 96,29%
Performance 3,81%
Stock of the 364 day T-Bills (in millions of CFA) 20 000


Second issue : second tranche of 10 000 million (10 billion) T-bills of_364 days

6 months (182 dayss)  after the first issue (residual maturity 182 days).

Additional amount sought by Treasury : 10 000 million FCFA

Investor Interest rate(in %)( Amount in million CFA) Accumulation
Investor_X 3 3 000 3 000
Investor_Z 3,15 5 000 8 000
Investor_C 3,15 1 000 9 000
Investor_A 3,4 1 000 10 000
Investor_B 3,65 1 750 11 750


The award of matching results

Amount (in millions of CFA) 10 000
Marginal rate 3,40%
Weighted average rate 3,77%
Interest paid by Treasury (in million CFA)

Net received by the Treasury (in

millions of CFA


9 809,47

Price 98,09%
Performance 3,84%
Stock of the 364 day T-bills (in millions of CFA) 30 000


The amount of the loan raised in matching adds to the amount borrowed during the first issue. At maturity, the State will have to repay 30 000 million CFA to the holders of the 364 days T-Bills.