Tuesday , May 17 2022

CREPMF clarifies the conditions for issuance of bonds in the regional financial market through public offerings (Press release)


In a press release dated November 13, 2018, the Regional Council for Regional Savings and Financial Markets (CREPMF) recalled the conditions for issuing a bond through the public offering in the regional financial market. SENELEC 6.50% 2018 – The mediation of the information regarding the rating of the Senegal National Electricity Company (SENELEC) in the context of bond issuance with public offering – 2025 in the financial market.

& # 39; & # 39; The CREPMF shall ensure that all interested parties comply with the applicable regulations in respect of any asset regulating an IPO in the regional financial market. & # 39; & # 39; It should remind you that you need to make an adequate rating in the category. . Otherwise, the beneficiaries must be guaranteed the first demand. The two options offered to issuers, ie rating and / or guarantee, must cover the maturity of the loan indefinitely. "He reads his statement.

This statement CREPMF has announced that Pan-African rating agency Bloomfield Investment has terminated SENELEC's rating on November 1, 2018. This information known to the public by the press has created fear among the beneficiaries. This is especially since the bond issue with public offering – SENELEC 6.50% 2018 – 2025 has not yet matured in the financial market.

In addition, Article 8 of Regulation (EC) No 36/2009 of the CREPMF, amending and amending the Directive no. States and local or regional public authorities that object to the public for savings must be specified by a rating agency duly approved by the Regional Council. When issuing debt securities, issuers are committed to taking notes throughout the life of the securities. If an adequate rating cannot be obtained for the investment class category assigned by a rating agency, issuers must provide a first demand guarantee for subscribers. In the absence of a rating, the collateral amount must correspond exactly to the principal and interest of the security in question, and the period must correspond to the depreciation of the collateral. This warranty must be given by a guarantor approved by the Regional Council and by a rating that is considered satisfactory by a properly approved rating agency.

SENELEC reacted by Bloomfield the day after the announcement of Senegal. & # 39; & # 39; SENELEC has not quit the rating process & # 39; in the press release made by the company. This version is still in the process of reviewing several editors, but not Bloomfield Investment. According to some precautionary measures, SENELEC would now be contracted with a Senegal rating agency.

Elisha B.

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