A first for the regional market
On 6 October 2026, the Treasury of Côte d'Ivoire issued, by auction on the WAEMU public securities market, a 20-year fungible Treasury bond (OAT). According to the published results, it is the longest maturity ever offered on this market: no Union member State had borrowed there over such a horizon.
The auction covered four lines, at 3, 5, 7 and 20 years. For 80 billion FCFA offered, investors submitted 127.998 billion, a coverage ratio of 160%. The Treasury accepted 88 billion. The 20-year line carries a 6.25% coupon, paid annually, and cleared at a weighted average yield of 7.00%. Principal will be repaid on 7 October 2046.
What the curve says
| Maturity | Coupon | Weighted average yield |
|---|---|---|
| 3 years | 5.20% | 6.40% |
| 5 years | 5.45% | 7.06% |
| 7 years | 5.70% | 7.18% |
| 20 years | 6.25% | 7.00% |
Weighted average yields on accepted amounts. A single session: to be read as a price point, not as a benchmark curve.
The 20-year yield came in below the 7-year one. It would be unwise to read too much into this. An auction is a single session, and the amounts accepted per line are not yet known in detail. The price of a long line mostly reflects the presence of a few long-horizon investors (insurers, pension funds) seeking to match distant liabilities and willing to accept a lower yield for duration. It is a signal about demand, not yet a yield curve.
The second lesson lies in the gap between coupon and yield: on every line, the bonds were placed below par. The State therefore pays the market price for its funding, not the stated coupon. That 7.00% yield is now the reference point for 20-year borrowing in FCFA.
“A State borrowing for 20 years in its own currency opens the way. Long-term private projects still need to find the same horizon.”
Edmond'S & Company — ResearchWhy the horizon matters for long-term financing
Infrastructure, energy and real estate pay back over fifteen to twenty-five years. Until now they were financed either in foreign currency, with exchange-rate risk, or in FCFA over tenors that were too short, which weighs on repayments in the early years. A 20-year local-currency price point changes the reasoning: it gives banks, insurers and project sponsors a reference to price long-term FCFA debt.
For public-private partnerships, the stakes are direct. The 2026-2030 National Development Plan expects more than 70% of its investment from the private sector. Some of these projects will only be financeable if long-term local-currency debt exists, at a readable price.
The limits
- A single price point. A long line only becomes a benchmark if it is reopened and traded on the secondary market, which remains illiquid in WAEMU.
- A narrow investor base. Long-term savings (life insurance, pensions) are still limited in the region. They will not absorb repeated long issues by the State and companies at the same time.
- A high real cost. With inflation expected by the BCEAO at 1.0% in 2026, a 7.00% yield means a real cost of about 6%. A project must generate a higher return to bear it.
- Crowding out. Every billion the State raises long-term is a billion less available to private issuers over the same horizon.
Financial implications
| Player | What changes | Decision to prepare |
|---|---|---|
| Project and PPP sponsors | A 20-year FCFA rate reference now exists. | Test long local debt in financial models from this reference, plus a project risk premium. |
| Corporate borrowers | Long tenors open first to the State; the private sector will follow later and at a higher price. | Match debt tenor to the life of the financed assets and prepare a file able to convince a long-term lender. |
| Insurers and pension funds | A long FCFA sovereign asset to match distant liabilities. | Review allocation and asset-liability matching in light of this new horizon. |
| Banks | A reference rate to price long-term credit, but greater interest-rate risk if held. | Measure balance-sheet sensitivity to a rate rise on long securities held. |
What we will watch
| Indicator | Why it matters | Timing |
|---|---|---|
| Reopening of the 20-year line | Condition for it to become a liquid benchmark | 2026-2027 |
| Long issues by other Union States | Spread of the 20-year horizon beyond Côte d'Ivoire | 2027 |
| First long-term private FCFA debt | Move from a sovereign signal to project finance | 2027 |
| BCEAO Monetary Policy Committee | Policy rate at 3.00%; it shapes the whole curve | December 2026 |
Our reading
The issue is a real step for the regional market: it shows there is demand for 20-year FCFA sovereign paper, at a price close to that of the 5- and 7-year lines. It does not yet solve long-term corporate financing. For the projects we support, we will treat this yield as a floor: the cost of private debt of the same tenor will be built above it, and its availability will depend on the quality of the file presented to lenders.
Results of the Côte d'Ivoire fungible Treasury bond auction of 6 October 2026 (UMOA-Titres), as published by Financial Afrik, Sika Finance and Lejecos, 6 October 2026
BCEAO — Monetary Policy Committee of 9 September 2026
Ministry of Planning and Development — National Development Plan 2026-2030