The government of Guinea has launched a bond issuance program worth 2,500 billion Guinean francs (GNF) with an interest rate of 11% over five years. The program, which was launched through a public call for savings, aims to finance development projects in various sectors. The bond issuance is part of the government's vision to transform the national economy and support the Simandou 2040 socio-economic development program.
The Minister of Economy, Finance, and Budget, Mariama Ciré Sylla, met with bank executives, insurance company leaders, and institutional investors to discuss the bond issuance program. She emphasized the importance of local institutions in financing development projects and highlighted the role of banks and insurance companies as strategic partners in Guinea's economic transformation.
According to Minister Sylla, the 2,500 billion GNF raised from the bond issuance will be allocated to specific projects identified in the finance law, including energy, road construction, education, and healthcare. The minister assured investors that the government has a track record of honoring its debt obligations and that the bond issuance is a secure investment opportunity.
The banking sector has expressed confidence in the bond issuance program, with Diawadou Bah, Director-General of Ecobank and President of the Professional Association of Banks (APB), stating that the sector's financial solidity has increased significantly. He noted that the total balance sheet of banks has grown from $4.2 billion in 2021 to $14.2 billion in August 2024.
Guy Laurent Fondjo, Managing Director of Afriland First Bank Guinea and coordinator of the operation, highlighted the maturity of the local financial market. He noted that the bond issuance program has been well-received, with a target of 2,500 billion GNF already achieved. Fondjo added that the syndicate of placement consists of seven institutions, including Afriland First Bank, Ecobank, and VistaGui.
The Central Bank of the Republic of Guinea (BCRG) and the insurance sector have also expressed support for the bond issuance program. BCRG Governor, Dr. Karamo Kaba, emphasized that the investment is risk-free and that the government has a solid credit rating. Insurance companies see the bond issuance as an opportunity to invest in long-term assets and match their liabilities.
The bond issuance program is open for subscription until October 23, 2026, with a minimum investment value of 5 million GNF. The program aims to mobilize domestic savings and channel them towards development projects. The government hopes to replicate the success of previous bond issuances and make the program a regular feature of the country's financing landscape.
Key points
- The bond issuance program aims to finance development projects in various sectors, including energy, road construction, education, and healthcare.
- The government has a track record of honoring its debt obligations, making the bond issuance a secure investment opportunity.
- The banking sector has expressed confidence in the bond issuance program, with a target of 2,500 billion GNF already achieved.
