Home Professional Space > Fungible Treasury Bonds (T-Bonds)
Fungible Treasury Bonds (T-Bonds) are government medium to long-term debt securities issued by way of invitation to tender.
The bid amount is multiple of 10,000 FCFA for a minimum amount of 1 000 000 FCFA (minimum purchase of 100 securities).
Tax applied to Fungible Treasury Bond is that in force in the issuing State. As a general rule, T-Bonds are tax-free for buyers resident in the issuing State.
For example, the State could use these resources to finance public infrastructure
(Airport, highway, hospital, schools, etc.).
Fungible Treasury Bonds are available at any time on the primary market and the secondary market through Primary Dealers, financial institutions and brokerage firms within WAMU.
Bonds are traded over-the-counter on the secondary market and eligible (for those which qualify) as collateral for Central Bank refinancing.
Let’s take the example of a 3 year T-bond. 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 2.5 years of residual maturity and have exactly the same characteristics as the first issues. Securities issued in both instances (first and second tranches) are fungible.
First issue: 20 000 million (20 billion) of 3 year FT-Bonds with a 5.5% coupon rate
|Investors||price requested (in%)||Amount proposed
(n million CFA)
|Investor_A||100,5000||3 000||3 000|
|Investor_B||100,2500||1 000||4 000|
|Investor_C||100,0000||1 050||5 050|
|Investor_D||99,7500||5 000||10 050|
|Investor_B||99,0000||1 750||11 800|
|Investor_E||98,7500||2 500||14 300|
|Investor_C||98,2500||3 000||17 600|
|Investor_G||97,5000||2 000||20 000|
Amount put out to tender by the Treasury: 20,000 CFA
Results of the auction on the first show
|Amount in million (CFA)||20 000|
|Weighted average price||99,2063%|
|Net received by the Treasury (in million CFA)||19 841,25|
|Stock of the 3 year T-Bonds (in millions of CFA)||20 000|
Additional amount sought by the Treasury: 10 000 million FCFA
|Investor||prices (in %)||Amount proposed
(in million CFA)
|Investor-X||100,0000||3 000||3 000|
|Investor-Z||99,5000||5 000||8 000|
|Investor_C||99,2500||1 000||9 000|
|Investor_B||98,7000||1 750||11 750|
Matching auction results
|Amount (in millions of CFA)||10 000|
|Weighted average price||99,5750%|
|Accrued coupon (half of the full annual coupon)||2,7500%|
|Net received by the Treasury (in million CFA)||10 232,50|
|Stock of the 3 year T-Bonds (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 3 year T-Bonds.