Instruction No. 03/CRCT/2021 - Operating Procedure for the Reopening of Treasury Securities Lines Issued by CEMAC Member States

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BANK OF CENTRAL AFRICAN STATES CENTRAL DEPARTMENTS Clearing and Securities Depository Unit

THE GOVERNOR,

Having regard to Regulation No. 03/19/CEMAC/BIC/CMC on Treasury Securities Issued by CEMAC Member States: Having regard to the General Regulations of the Clearing and Securities Depository Unit; Having regard to the Adhesion Agreement to the Clearing and Securities Depository Unit; Having regard to the Agreement on the Organization of Treasury Securities Issuances; Having regard to the Agreement on Participation in Treasury Securities Issuances; Having regard to the Specifications for Treasury Securities Specialists;

After approval by the CRCT Supervisory Council during its ordinary session on September 30, 2021, via videoconference; Pursuant to Article 34, paragraph 1 of the aforementioned Regulation No. 03/19;

HEREBY ISSUES THE INSTRUCTION CONTAINING THE FOLLOWING:

Article 1. - PRESENTATION OF REOPENING OPERATIONS Treasury securities issuance operations, whether by issuing a new line or reopening an existing line, are recorded in the annual issuance schedule, updated quarterly and published by the Public Treasury.

INSTRUCTION NO. 03/CRCT/2021 ON THE OPERATING PROCEDURE FOR THE REOPENING OF TREASURY SECURITIES LINES ISSUED BY CEMAC MEMBER STATES

Article 2. - REFERRAL TO THE BANK OF CENTRAL AFRICAN STATES (BEAC) The Public Treasury refers to the BEAC the organization of a treasury line reopening operation, following the same procedure and timeframe as those established in the Agreement on the Organization of Treasury Securities Issuances. The request is accompanied by the tender notice. The tender notice specifies the designation "reopening of a treasury securities line" and includes the following information:

• The operation date;
• The value/settlement date;
• The requested amount;
• The characteristics of the treasury securities line to be reopened:
  • The name of the treasury security: Treasury bill assimilated (BTA) or treasury bond assimilated (OTA);
  • The maturity date of the treasury security;
  • The interest rate, if it is an OTA;
  • The nominal outstanding amount of the treasury securities line prior to the reopening operation;
  • The security code of the treasury security.

Article 3. - CREATION AND OPENING OF THE AUCTION The BEAC creates and opens the auction in the dedicated platform following the same procedure stated in the Agreement on the Organization of Treasury Securities Issuances.

Article 4. - PUBLICATION OF THE TENDER NOTICE The tender notice is published following the same procedure stated in the Agreement on the Organization of Treasury Securities Issuances.

Article 5. - PARTICIPATION CONDITIONS All Treasury Securities Specialists (TSS) approved by the relevant Public Treasury, whether they hold or do not hold the concerned treasury security, are eligible to submit bids.

Article 6. - SUBMISSION AND FILING OF BIDS TSS formulate and submit their bids following the same procedure stated in the Agreement on the Organization of Treasury Securities Issuances. The price proposed for the purchase bid of an OTA does not take accrued interest into account.

Article 7. - PROCESSING OF BIDS Treasury securities purchase bid proposals are processed following the same procedure stated in the Agreement on the Organization of Treasury Securities Issuances.

Article 8. - DETERMINATION OF RESULTS The results of a treasury securities line reopening operation are determined following the same procedure and within the same timeframe as those established in the Agreement on the Organization of Treasury Securities Issuances.

Article 9. - NOTIFICATION OF RESULTS TSS are informed of the outcome of their bids following the same procedure stated in the Agreement on the Organization of Treasury Securities Issuances.

Article 10. - SETTLEMENT OF ACCEPTED BIDS Payment to the Public Treasury of accepted bids within a treasury securities line reopening operation includes accrued interest. Settlement of accepted bids and delivery of securities are carried out within the timeframe indicated in the tender notice, according to the procedure stated in the Agreement on the Organization of Treasury Securities Issuances. Failure to settle accepted submissions is also subject to the same penalties and sanctions as those provided in the Agreement on the Organization of Treasury Securities Issuances.

Article 11. - INTEREST PAYMENT AND MATURITY REPAYMENT Following each treasury securities line reopening operation, a new schedule for interest payment and principal repayment of the concerned securities is automatically generated in the dedicated platform for processing treasury securities issuances. Principal repayment at the maturity of treasury securities and payment of accrued interest for OTAs follow the procedure established in the Agreement on the Organization of Treasury Securities Issuances. Penalties regarding payment defaults by the Public Treasury, as stated in the Agreement on the Organization of Treasury Securities Issuances, apply.

Article 12. - ENTRY INTO FORCE This Instruction enters into force on the date of its signature.

Done at Yaoundé, on September 30, 2021 The Governor, ABBAS T. TOUOLI