Frequently Asked Questions
Find out the most frequently asked questions.
What is a public offering?
Public offerings are made by governments or any other entity:
- Whose securities are disseminated among more than one hundred entities with no legal ties to each other,
- Who use either an investment syndicate or public marketing methods such as publicity and solicitation to offer investment products to the public in WAMU, and
- Whose securities are listed on the regional stock exchange (Bourse Régionale des Valeurs Mobilières).
What is the difference between bonds issued through public offerings and bonds issued on the market through auction?
When financial instruments are issued through public offerings, an investment syndicate made up of brokerage firms handles the sale of the instruments to investors and the general public. When the financial instruments are issued, they are listed on the regional stock exchange (Bourse Régionale des Valeurs Mobilières).
In the case of financial instruments issued through auction, primary subscription of treasury bills and bonds is restricted to credit institutions, brokerage firms and regional financial investors with settlement accounts with the Central Bank. Other investors, whether they are private individuals or corporations, may also subscribe to bills and bonds on the primary market through credit institutions or brokerage firms established on the territory of the Union.
Securities issued through auction are not listed on the regional stock exchange (BRVM).
How can I find ratings for treasury bills and bonds issued on the regional market?
As stated in the regulatory texts of the Regional Council for Public Savings and Financial Markets (CREPMF), “any issuer, other than the states and local or territorial government, that makes public offerings, must be rated by a rating agency duly certified by the Regional Council”, thus, financial rating of the states is not a prerequisite for issuing financial instruments on the regional financial market.
In the specific case of Eurobonds, rating is mandatory, and the fact is mentioned in the offering circular.
Where can I find information on government debt securities in the Union?
Investors who require information about public securities may contact the regional stock exchange (BRVM) or Agence UMOA-Titres.
Is there a risk involved in purchasing public securities?
An investor who purchases a financial instrument always runs a certain amount of risk. To take one instance, an investor cannot be certain of the price at which the instrument can be sold in the future.
The term “risk” can refer to a variety of different types of risk. These include:
- Liquidity risk: this is the risk of not being able to sell a financial instrument at its price.
- Solvency risk: the risk that a creditor may definitively lose his or her claim if the borrower is unable to meet all of his or her commitments.
- Foreign exchange risk: an increase in the rate of one currency may cause a drop in the value of assets denominated in a different currency.
- Interest rate risk: interest rate variations expose holders of financial securities to a risk of incurring capital losses. This is an interest rate risk to the extent that it involves an actual cost or loss of income for the investor even when the issuer complies fully with the commitments he or she has made.
- Political risk: this is the risk associated with a political situation or a decision handed down by the political authorities: discriminatory tax system, inability to repatriate capital, revolution, and so on.
- Regulatory risk: changes in laws or regulations may directly impact the profitability of an economic sector.
- Inflation risk: this is the risk of being repaid in a currency that has depreciated, or of ending up with a rate of return below the rate of inflation.
- Cyclical risk: stock market depression or euphoria, anticipation of drops or increases in business.
Can a state decide to pay certain holders of bonds or bills before others?
No, public securities in the Union are dematerialized and they are processed independently of the identity of their holders.
All investors holding the same financial instrument receive identical treatment.
Why are outstanding securities different from the issue amount?
On the day when securities are issued, the outstanding is equal to the issue amount.
Over the lifetime of the securities, events will take place that change the outstanding, such as purchase of securities by the states or the repayment of portions of the principal (in keeping with terms of redemption).
Why do WAMU state governments issue Eurobonds?
In the framework of their resource mobilization strategies, the member states can issue debt securities on the regional market (in CFA Francs) or on international financial markets (in currencies other than the CFA Franc). This latter method is designed to meet a number of goals:
- Broadening the investor base;
- Accessing new sources of funding;
- Enhancing their presence on the international financial markets.
Comment acheter des titres souverains (bons et obligations du Trésor) d'un État de la zone UEMOA?
Pour les titres émis par adjudication, c’est à dire que le Marché des Titres Publics, l’investisseur devra se rapprocher des intermédiaires de marché (ajouter le lien de la page home des intermédiaires de marché).
Concernant les titres émis par syndication, l’investisseur devra prendre contact avec une SGI.
Je veux revendre mes obligations, est ce que je vais perdre mes intérêts ?
Lors de l’achat, comme de la vente des obligations, en plus du principal, le coupon couru (depuis la dernière date de paiement) sera échangé entre les deux parties de la transaction, garantissant ainsi un traitement équitable sur le paiement des intérêts.
Il parait que le remboursement par amortissement constant se fait par tirage au sort ?
Non, dans la cadre du remboursement du capital par amortissement constant (et par annuité constante), tous les porteurs de titres reçoivent une portion du capital du titre.
Quand est-ce que les intérêts des Obligations du Trésor sont payés ?
Toutes les informations relatives aux émissions de titres publics (dates de paiement des intérêts, montant des intérêts, remboursement des titres, fiscalité) sont mentionnées dans la note d’information rédigée lors de chaque nouvelle émission.
A la recherche d’une définition ?
Consultez le lexique comprend les principaux termes pour vous familiariser avec les Titres Publics