The president of the board of directors of the DSX, Benedict Belibi, has hailed the long-awaited issuance of CFAfr200bn-worth (US$409m-worth) of Treasury bonds in December as a "huge success". The bond issuance, which was the government's first (October 2010, Economic policy), attracted over 800 subscribers from across the regional economic grouping, Communauté économique et monétaire de l'Afrique centrale (CEMAC), as well as from Belgium, China and France. Despite an extension of the subscription period from seven to fifteen days-which suggests an initial lack of interest-the government appears to have exceeded its funding target. The Ministry of Economy, Planning and Regional Development assigned CFAfr206bn-worth of the funds raised to infrastructure spending.

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The public offering comprised at least 20m shares issued at a price of CFAfr10,000 (US$20.40). The maturity period of the bond is five years and the interest rate is 5.6%. Although interest earnings will apparently be exempt from taxation, the government has a one-year grace period before repayment-interest will start to accumulate from end-December 2011 and be payable from end-December 2012. According to local media, the government, in order to reassure investors, will establish an autonomous account at the regional central bank, Banque des Etats de l'Afrique centrale (BEAC), into which monthly payments will accrue. Given the success of the first bond issue, another issuance equivalent to CFAfr150bn is planned for May 2011. In the light of the excess liquidity in the banking sector (October 2010, Economic performance) the crowding-out of private investment is not a major concern of increased domestic borrowing. However, domestic borrowing comes at a higher price than concessional foreign debt and may begin to raise alarm bells about sustainability if the government becomes addicted to this new source of funds.