The first listing ceremony of the “FCTC ORABANK 7% 2021-2026” loan from Orabank Togo was held in virtual mode this Thursday, July 28. It is thus admitted to the bond compartment of the Regional Stock Exchange (BVRM).

This operation, which is the very first securitization of receivables for a Togolese company, had enabled the bank, in December 2021, to raise an amount of 25 billion FCFA on the market. Initially scheduled to last a fortnight, the distribution of the titles was closed in advance the day after the launch carried out from the premises of the bank's headquarters in Lomé.

“Beyond its undeniable success, this operation reinforces our positioning on the financial and banking market. The securitization of receivables being this financial arrangement by which Orabank was able to obtain financing by transforming its receivables into negotiable and liquid financial securities on the financial markets, its success in the operation meets the aspirations of the bank", commented Guy Martial. Awona, CEO of Orabank Togo, during the first listing ceremony.

The latter also marks the first of a debt securitization mutual fund (FCTC) on the market since the beginning of 2022, and the 3rd to be listed on the BRVM since 2020.

Commenting on the performance of this operation, prized by UEMOA investors, Moussa Davou, director of the operations and information systems department of the BRVM, representing the general manager of the stock exchange based in Abidjan, declared that they reflect the willingness of the latter "to experiment with innovative financial instruments that allow them to diversify the risk of their portfolio while providing them with a certain return".

A “true refinancing instrument”

“Securitization then appears to us as a real refinancing instrument for banking players in the UEMOA in a context of implementation of the Basel II and Basel III regulations. Orabank Togo thus becomes the first banking institution in Togo to refinance itself on the Uemoa financial market through this innovative mechanism,” he said.

“The success of the operation leads me to urge all private sector players in the sub-region in general and those in Togo in particular to use these innovative mechanisms to finance the development of their activity and promote the economic growth of our countries", concluded Moussa Davou.

This operation, it is said, will therefore have enabled the leading bank in the Togolese market to refinance its credit portfolio, to benefit from new cash, to support the government in the implementation of national projects and to optimize the management of its prudential ratios. “It will allow (…) to carry out several reloadings, as well as subsequent bond issues, thereby constituting a sustainable refinancing tool”, adds the general manager of Orabank Togo.