Regulatory Alerts2023-08-24
Circular No. 004-2004 on the Procedure, Form and Mandatory Details of First-Demand Guarantees for Regional UMOA Bond Issuance Authorizations
The UMOA Regional Council for Public Savings and Financial Markets issued Circular No. 004-2004 to establish mandatory procedures, forms, and details for first-demand guarantees submitted with regional bond issuance authorization requests. The circular requires issuers, investment management and intermediation companies, and guarantors to submit a prior letter of intent specifying principal and interest coverage rates, along with an original or certified resolution authorizing the guarantee. Final authorization and subscription commencement are strictly conditioned upon transmitting executed guarantee letters or agreements to the Council, with strict compliance to Article 30 of the Uniform Act on Security Interests and Decision No. 009/01/2000 to avoid nullity.
WEST AFRICAN MONETARY UNION
REGIONAL COUNCIL FOR PUBLIC SAVINGS AND FINANCIAL MARKETS CIRCULAR NO. 004-2004 ON THE PROCEDURE, FORM AND MANDATORY DETAILS OF FIRST-DEMAND GUARANTEES SUBMITTED WITH REGIONAL UMOA BOND ISSUANCE AUTHORIZATION REQUESTS
In the context of reviewing authorization requests for bond issuances via public offering on the Regional Financial Market, the General Secretariat of the UMOA Regional Council for Public Savings and Financial Markets brings to the attention of issuers, Investment Management and Intermediation Companies (SGI), and guarantors the following procedure:
- The processing of any authorization request file for a public offering bond issuance is subject to the prior submission of at least one letter of intent for guarantee specifying the coverage rate of the bond in principal and interest,
- The submission of the file to the Regional Council's bodies is conditioned upon the production of the guarantee grant decision, namely an original copy or a certified true copy of the resolution by the guarantor's decision-making body authorizing the first-demand guarantee,
- The communication of the Regional Council's decision authorizing the operation, as well as the commencement of subscriptions, will only take place after transmission to the Regional Council of guarantee instruments evidenced by a letter or a guarantee agreement.
This procedure is valid for private placement bonds when guarantees are announced. -1/2-
AVENUE JOSEPH ANOMA 01 P.O. BOX 1878 ABIDJAN 01 TEL. (225) 20 21 56 05/ 20 21 57 42 – FAX (225) 20 33 23 04 E-mail: sg@crepmf.org
AVENUE JOSEPH ANOMA 01 P.O. BOX 1878 ABIDJAN 01 TEL. (225) 20 21 56 05/ 20 21 57 42 – FAX (225) 20 33 23 04 E-mail: sg@crepmf.org
In any event, the letter or guarantee agreement must include, among other information elements, the details prescribed under penalty of nullity by Article 30 of the Uniform Act on the Organization of Security Interests, as well as those provided for by Regional Council Decision No. 009/01/2000 determining the guarantees to be submitted during bond issuances and the approvals of commercial intermediaries.
Furthermore, the letter or guarantee agreement must be sent to the Regional Council as an original copy duly registered.
This circular will be published wherever necessary.
Done at Abidjan, on June 7, 2004 The General Secretary Edoh Kossi AMENOUNVE -2/2-