Benin bond sale draws scrutiny as Togolese investors take entire $165mn issue

• Entire bond issue taken up by investors from neighbouring Togo
• Deal structure raises questions over competitive auction process

COTONOU, BENIN – Benin raised 100 billion francs CFA ($165 million) in a regional bond auction fully absorbed by investors from neighbouring Togo, an outcome that is raising eyebrow over the transaction.

The West African country offered three maturities – four, six and 10 years – at an auction held Tuesday on the regional market of the West African Economic and Monetary Union, known by its French acronym UEMOA. Total bids reached 117.8 billion francs CFA, translating into a coverage ratio of 117.8%, according to figures published by UMOA-Titres, the region’s sovereign debt management agency.