Investor caution builds in CEMAC bond market despite jump in issuance

• Outstanding debt rose to CFAF 8.45tn in March, but subscription rate slumped to 60.95%
• Short-term debt dominates, raising refinancing risks and hampering yield curve development

Cotonou, Benin – Central Africa’s sovereign debt market delivered mixed signals in March, with a rise in issuance volumes offset by a sharp drop in investor participation. Data from the Bank of Central African States (BEAC) shows total outstanding government securities in the CEMAC region climbed 12.3% month-on-month to reach CFAF 8.45 trillion by the end of March, but subscription rates fell to just 60.95%, down from 84.94% in February.