Information Document on Issuance of Fungible Treasury Bonds via Bid Invitation by the State of Cameroon (2020 Financial Year)

REPUBLIC OF CAMEROON
MINISTRY OF FINANCE
INFORMATION DOCUMENT
ISSUANCE OF FUNGIBLE TREASURY
BONDS THROUGH BID INVITATION
TO PRIMARY DEALERS (SVT)
2020 FINANCIAL YEAR

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TABLE OF CONTENTS
I. LIST OF TABLES AND GRAPHS........................................................................................................... 3
List of tables......................................................................................................................................... 3
List of graphs ....................................................................................................................................... 3
II. DEFINITIONS AND ABBREVIATIONS .............................................................................................. 4
III. TERMS AND CONDITIONS OF RELEASE OF THIS DOCUMENT ............................................. 5
IV. WARNING AND RESTRICTIONS........................................................................................................ 6
A. Warning........................................................................................................................................ 6
B. Restrictions .................................................................................................................................. 6
V. PREAMBLE.................................................................................................................................................. 7
VI. OFFICIALS OF THE INFORMATION NOTE AND AUDIT OF ACCOUNTS ............................ 8
VII. PRESENTATION OF THE issuing authority........................................................................................ 9
A. Macroeconomic outlook ............................................................................................................... 9
B. Budget projections for 2020 ....................................................................................................... 11
C. Banking sector ........................................................................................................................... 12
D. Microfinance sector.................................................................................................................... 13
E. Financial market......................................................................................................................... 13
F. Public debt situation in Cameroon.............................................................................................. 17
G. Medium-Term Debt Strategy for 2020-2022............................................................................... 19
H. 2017-2020 ECONOMIC AND FINANCIAL PROGRAM.............................................................. 21
I. FRAMEWORK OF THE OPERATION ....................................................................................... 22
VIII.ASSESSMENT OF THE STATE'S INTERVENTION ON THE CAPITAL MARKETS.............. 31

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I. LISTOFTABLESANDGRAPHS
List of tables
Table 1: List of approved SVT Cameroon................................................................................... 5
Table Table 2: Sector-by-sector breakdown of GDP.................................................................. 9
Table 3:: Table of key indicators................................................................................................. 10
Table 4:: Budgetary forecasts (in billions)................................................................................. 12
Table 5: Summary of securities issued by syndication ........................................................... 15
Table 6: History of issues on the BEAC open subscription securities market between 2018
and 02/29/2020 ............................................................................................................................ 16
Table 7: Evolution of the Public Debt........................................................................................ 18
Table 8: Breakdown of new 2020 commitments (Domestic debt) ......................................... 21
Table 9: List of eligible projects by Sector. ................................................................................ 23
Table 10: OTA – 2 years .............................................................................................................. 25
Table 11: OTA - 3Years ................................................................................................................ 26
Table 12: OTA-5 years................................................................................................................. 27
Table 13: Convergence criteria ................................................................................................... 28
Table 14: Amortization of a 2-year maturity bond (in millions of CFAF)............................ 28
Table 15: Amortization of a 5-year maturity bond (in millions of FCFA)............................ 28
Table 16: Amortization of a 5-year maturity bond (in millions of FCFA)............................ 29
List of graphs
Graph 1: Distribution of external debt ...................................................................................... 18
Graph 2: Distribution of domestic debt..................................................................................... 19
Graph 3: Composition of foreign currency debt...................................................................... 19
Graph 4: Breakdown of projects by sector................................................................................ 24
Graph 5: Distribution per sector................................................................................................. 31
List of Figures
Figure 1: Organization Chart of the Issuing Authority .......................................................... 30

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II. DEFINITIONSANDABBREVIATIONS
Tender
Fungibility
BEAC
Procedure by which BEAC, acting on behalf of the Treasury, conducts the physical organization of issuance of public securities via open subscription and their distribution among the various authorized bidding credit institutions Linking a newly issued security to a previous borrowing line with the same characteristics Bank of Central African States BTA Fungible Treasury Bills BTP Building and Public Works CEMAC Central African Economic and Monetary Community CRCT Securities Settlement and Custody Unit DGTCFM Directorate General of the Treasury. Financial and Monetary Cooperation DSX Douala Stock Exchange CFA F ECF Central African Financial Cooperation Franc Extended Credit Facility MINEPAT Ministry of the Economy, Planning and Regional Development MINFI Ministry of Finance MINREX Ministry of External Relations OHADA Organization for the Harmonization of Business Law in Africa OTA Fungible Treasury bonds (negotiable securities issued during a public borrowing and representing a medium or long term claim on the State) GDP Gross Domestic Product SVT Primary dealers in Government securities TIAO Tender Interest Rates

Information Note |5
III. TERMSANDCONDITIONSOFRELEASEOFTHISDOCUMENT
This Information Document is intended for Primary Dealers in Government securities within the context of a program by the central bank (BEAC) in conjunction with the CRCT to issue Fungible Treasury Bonds (hereafter referred to as transaction) by tender. It shall be circulated or sent either in paper or electronic format free of charge to all Primary Dealers in Government securities approved by the Ministry of Finance of Cameroon and appearing on the list below:
Table 1: List of approved SVT Cameroon
Institutions Address

1. Afriland First Bank B.P. 11834 Yaoundé (Cameroun)
2. Banque Internationale du Cameroun pour
   l’Epargne et le Crédit (BICEC) Avenue du Général de Gaulle. B.P. 1925 Douala (Cameroun)
3. Banque Internationale pour le Commerce et
   l’Industrie du Gabon (BICIG) B.P. 2241 Libreville (Gabon)
4. Banque Sino-Congolaise pour l’Afrique Brazzaville – Congo
5. BGFIBANK Gabon 1295. Boulevard de l’indépendance. B.P.2253 Libreville (Gabon)
6. CCEI-GE Guinée Equatoriale
7. Commercial Bank Cameroun (CBC) Douala – Cameroun
8. Commercial Bank Centrafrique (CBCA) Bangui (RCA)
9. Commercial Bank Tchad (CBT) N’Djamena (Tchad)
10. Crédit du Congo B.P. 2470 Brazzaville (Congo)
11. Ecobank Cameroun Boulevard de la Liberté. B.P. 582 Douala (Cameroun)
12. Ecobank Centrafrique Place de la République. B.P. 910 Bangui (RCA)
13. ORABANK TCHAD N’Djamena (Tchad)
14. Société Commerciale de Banque (SCB) Cameroun 530. Rue du Roi Georges. B.P. 300 Douala (Cameroun)
15. Société Générale (SG) Cameroun 78. Rue Joss. B.P. 4042 Douala (Cameroun)
16. Société Générale (SG) Tchad BP : 461. Rue Du Commandant Galyam Negal N’Djamena (Tchad)
17. Standard Chartered Bank Cameroon (SCBC) B.P. 1784 Douala (Cameroun)
18. Union Bank of Cameroon Limited (UBC) B.P. 15569 Douala (Cameroun)
19. Union Gabonaise de Banque (UGB) Avenue du Colonel Parant. B.P. 315 Libreville (Gabon)
20. United Bank for Africa Cameroon (UBA) 1144. Boulevard de la Liberté. B.P. 2088 Douala (Cameroun)
21. United Bank for Africa Gabon (UBA) Libreville (Gabon)
    This Document may also be downloaded on the following Cameroonian Government Websites:

• www.minfi.gov.cm
• www.dgtcfm.net
• www.minepat.gov.cm
• In order to ensure the success of the Transaction, Primary dealers (SVTs) are authorized
  to make this Document available to any resident or non-resident investor they will partner with to place the securities acquired by tender.

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IV. WARNINGANDRESTRICTIONS
A. Warning
The attention of potential investors is drawn to the fact that an investment in financial instruments involves risks and that the value of the investment may rise or drop, subject to factors that may be internal or external to the Issuing authority. The Bank of Central African States (BEAC) shall make no pronouncement on the advisability of bidding transactions or on the success of the planned operation. The endorsement of BEAC shall relate exclusively to the quality of information provided and its consistency with the laws and regulations in force. B. Restrictions This information note is not open to persons residing where the laws do not authorize subscription (or purchase) of the securities which constitute the subject of this note. Those in possession of this information note should read it and respect the regulations to which they are bound with respect to a public call for savings. Each bidding Primary dealer may only offer for sale the securities specified in this Information Note, in accordance with the laws and regulations within the CEMAC area.

Information Note |7
V. PREAMBLE
The regulatory framework of the planned Operation shall be as follows:

• Regulation no. 03/08/CEMAC/UMAC/CM of 06 October 2008, on public securities via
  open tender issued by CEMAC member States, which specifies the provisions governing the issuance, placement and management of the said securities;
• Law No. 2018/012 of 11 July 2018, on the Financial Regime of the State and other
  Public Entities;
• Law No. 2019/023 of 24 December 2019 on the Finance Law of the Republic of
  Cameroon for the financial year 2020;
• Decree No 2020/132/of/18 March 2020 habilitating the minister of finance to issues
  public securities intended to finance development projects registered in the finance law of the republic of Cameroon for fiscal 2020;
• Circular No. 00008349/C/MINFI of 30 December 2019 on Instructions relating to the
  execution of Finance laws, Follow-up and Control of the execution of the Budget of the State and other Public Entities for the 2020 financial year. In addition to the presentation of the different outlines of the planned Operation (characteristics, indicative calendar, guarantee mechanisms, terms and conditions of investment and repayment). The goal of this Information Document is to inform Primary dealers on the following:
• recent trends of the economic and financial situation of the State of Cameroon;
• status of public finances;
• trend of main growth macroeconomic aggregates;
• debt situation and medium term strategy;
• execution level of the Programme with the International Monetary Fund, backed by the
  ECF;
• use of funds to be raised on the money market;
• COBAC weighting of planned borrowings.
  This Document is buttressed with information provided by Government services implementing the State Budget.

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VI. OFFICIALSOFTHEINFORMATIONNOTE ANDAUDITOFACCOUNTS
Authorization of the minister of finance, representing the issuing authority

Information Note |9
VII. PRESENTATIONOFTHEISSUING AUTHORITY
A. Macroeconomic outlook
In 2020, the macroeconomic outlook remains favorable. The overall objective of economic policy remains the sustainability of the major macroeconomic balances, despite a volatile and uncertain international context. This objective includes the search for sustained growth that creates jobs, pursuit of inflation control, strengthening the profile of public finances and improving external accounts. The economic growth rate is thus projected at 4% in 2020, after 3.9% estimated in 2019. This growth would be sustained mainly by the non-oil sector. In fact, the oil sector is expected to grow by 0.6%, driven by gas production, while growth in the non-oil sector should improve to 4.2% in 2020 (as against 3.6% in 2019). By sector of activity, growth in the primary sector should accelerate to stand at 3.6% as against 2.1% in 2019, thanks to the recovery of agricultural activity, following a relative easing expected in insecure regions. In the secondary sector, growth should stand at 3.1% after 5.1% in 2019, due to a slowdown in the hydrocarbons subsector. Excluding hydrocarbons, the sector should benefit from the good performance of the manufacturing industries, benefiting from a better supply of electrical energy. The tertiary sector should grow by 4.6% in 2020, after 3.8% in 2019, thanks to the two abovementioned sectors (primary and secondary), the development of activities in the Kribi deep water port and the induced effects of 2021 African Cup of Nations.
Table Table 2: Sector-by-sector breakdown of GDP
2016 2017 2018 2019 2020 2021 2022
Primary Sector 5.0 3.2 5.1 2.1 3.6 4.2 4.7 of which: - Agriculture of food products 5.8 4.8 5.1 3.7 4.7 5.3 5.4

• Industrial and export agriculture 6.6 -3.1 3.9 0.4 2.3 3.1 5.1
• Forestry and logging 1.2 6.3 7.3 -2.4 1.0 2.2 2.0
  Secondary Sector 3.6 1.3 3.1 5.2 3.1 2.7 3.8 of which: - Extractive industries -3.4 - 16.1 -2.6 10.4 0.6 -5.6 -4.8
• Agrifoods industries 5.7 7.5 4.0 3.4 3.8 4.6 4.8
• Other manufacturing industries 4.4 5.6 3.3 3.0 2.0 4.1 5.2
• Buildings and public works 10.4 8.9 7.6 5.8 6.0 6.1 7.8
  Tertiary Sector 4.9 4.3 4.4 3.8 4.6 4.8 4.6 of which: - Vehicle trade and repair 5.6 4.5 5.1 4.4 4.4 6.3 6.1
• Restaurants and hotels 6.6 5.3 4.3 4.0 4.8 7.0 4.0
• Transport. warehouses and communications 2.2 4.2 4.0 4.7 5.0 5.8 4.9
• Information and telecommunications 6.0 5.7 -2.3 -0.7 1.5 3.0 1.9
  GDP at factor cost 4.5 3.3 4.1 3.9 4.0 4.1 4.4 GDP 4.6 3.5 4.1 3.9 4.0 4.1 4.4 Source : MINFI/ DP After 2.4% in 2019, the inflation rate should not exceed the 3% threshold in 2020, in connection with measures taken by the Government to control prices on the one hand and, on the other hand, to improve local supply in consumer products. As for external accounts, the projections are for a gradual reduction of the current account deficit, which should stand at 2.7% in 2020.

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Table 3:: Table of key indicators
History Estimates forecast
2017 2018 2019 2020 2021 2022
Real sector
GDP at current prices (billion CFAF) 20 328 21 493 22 692 23 925 25 029 26 452 Oil GDP 718 1000 1140 1093 973 907 Non-oil GDP 19 610 20 493 21 551 22 832 24 056 25 545 GDP at constant price 15 629 16 264 16 904 17 584 18 312 19 110 Oil GDP 846 823 908 914 863 822 Non-oil GDP 14 783 15 441 15 996 16 670 17 449 18 288 Annual growth (in %) GDP at constant price 3.5 4.1 3.9 4.0 4.1 4.4 Oil GDP -16.4 -2.7 10.4 0.6 -5.6 -4.8 Non-oil GDP 5.0 4.4 3.6 4.2 4.7 4.8 Price GDP deflator 1.5 1.6 1.6 1.4 0.5 1.3 Consumer prices (inflation) 0.6 1.1 2.4 2.2 2.0 2.0 Terms of trade 3.4 4.9 0.6 -3.2 -3.8 -2.0 Components of demand (in% of GDP) Consumption 81.1 81.6 81.0 80.7 80.2 81.1 GFCF 23.0 22.8 23.5 23.8 24.3 24.0 B&S exports 18.6 19.3 19.8 19.3 18.4 17.8 B&S imports 22.6 23.7 24.3 23.7 23.0 22.4 Public sector (% of GDP) Total Revenue and grants 15.0 15.7 16.4 15.2 15.1 14.9 of which Non-oil revenue (Tax pressure) 12.3 12.6 13.6 13.0 13.2 13.5 Expenses 18.8 18.5 18.7 17.4 16.7 16.4 of which capital expenditure 7.2 6.5 6.3 6.3 5.9 6.0 Overall budgetary balance (payment basis) Excluding grants -4.1 -2.9 -2.7 -2.6 -2.0 -1.9 Including grants -3.8 -2.5 -2.3 -2.1 -1.6 -1.9 Baseline budget balance (CEMAC) -3.3 -2.9 -2.9 -2.2 -1.3 -1.0 Non-oil primary fiscal balance -4.9 -3.9 -3.4 -2.8 -1.7 -1.1 Foreign sector Current account balance -3.4 -3.5 -2.8 -2.7 -2.6 -2.8 Monetary situation (nominal growth) Money supply (M2) 5.9 14.4 5.9 5.9 6.0 5.2 Net foreign assets 15.5 5.2 6.2 2.5 5.1 0.7 Credit to the economy 2.6 12.1 5.7 6.0 6.0 5.6 Source: MINFI/DP

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B. Budget projections for 2020
The objective of fiscal policy for the financial year 2020 remains the reduction of the overall budgetary deficit in accordance with the economic and financial reforms programme concluded with the IMF and with the criteria set in the framework of stability and convergence of the policies of the CEMAC countries. The budgetary framework shows a reduction in the overall budget deficit (commitment basis), from 2.3% of GDP in 2019 to 2.1% in 2020, under the effect of an improved mobilization of non-oil revenues and greater efficiency of public expenditure. In terms of fiscal policy, Government’s objective remains the optimal mobilization of non-oil internal revenue to support economic recovery. In 2020, the tax burden rate should be 13%. The tax revenue mobilization will have as its spring: (i) broadening of the tax base, (ii) securing revenue, (iii) combating tax fraud and tax evasion, and (iv) promoting good citizenship tax. The following measures are thus planned:
 In terms of optimizing revenue from internal taxation: (i) the establishment of a reduced VAT rate on certain essential goods hitherto exempted; (ii) the readjustment of the VAT liability threshold; (iii) the establishment of an appropriate system of electronic transactions taxing; (iv) strengthening the mechanism to combat illicit transfer of profits; (v) modernization of the methods of collecting certain stamp duties;  In terms of improving the business climate: (i) streamlining the taxation procedures for SMEs; (ii) reducing the number of taxes; (ii) rationalization of taxation for labour placement companies;  In terms of optimizing customs tax revenues: (i) readjusting the tax rate of excise duty on products that harm health, morals and the environment; (ii) gradual restoration of customs duties on tax-exempt products (rice. wheat. fish. etc.); (iii) adjustment of export tax rates to the degree of processing of exported products or to their local added value, in particular for wood, cocoa. etc.; (IV) revision of the rates of the common external tariff, in conjunction with the CEMAC; (v) establishment of a specific tax system for vehicles intended for public transport; (vi) rationalization, simplification and harmonization of supply chain and customs clearance procedures. Budgetary resources include internal revenue, loans and grants. Internal revenues include oil revenues and non-oil revenues. Oil revenues include the SNH royalty and the oil company tax. To these, revenues from the export of natural gas shall be added in 2020. Consolidated oil revenues will amount to 443 billion in 2020, down 88.8 billion from estimates of the 2019 fiscal year. The expected SNH oil royalty is 293.2 billion. The forecast of the gas royalty is CFAF 48.3 billion, and that of the tax on oil companies is 101.5 billion. Non-oil revenue is expected to grow at the same rate as nominal non-oil GDP, taking into account the impact of new fiscal and administrative measures. In 2020, non-oil revenue is expected to stand at 3 174.2 billion, of which 2 103 billion from taxes and duties, 859.2 billion from customs revenue and 212 billion from non-tax revenue. Loans and grants are forecast at 1 334.5 billion, of which 767 billion project loans, 115.5 billion budget support, 320 billion issues of public securities, 102 billion grants and 30 billion bank financing. With regard to expenditure, the Government intends to guarantee the sustainability of public finances through the rationalization of public expenditure. The measures envisaged relate notably to: (i) the pursuit of efforts to reduce State expenditure; (ii) the continuing clean-up of the balance file; (iii) the effective implementation of the SIGIPES II application to ensure integrated and decentralized management of salaries, pensions and careers of state personnel; (iv) the

12| Information Note prioritization of capital expenditure through, in particular, finalization of major first generation projects as well as the strengthening of budgetary allocations intended for the restructuring of SONARA to allow this important company to upgrade its infrastructure. Budgetary expenditure is sub-divided into three main headings: current expenditure, capital expenditure and public debt. Current expenditure is projected at 2 443.5 billion against 2 531 billion estimated for the 2019 financial year, representing 87.5 billion drop. Capital spending is forecast at 1496.3 billion, up 67.5 billion from the 2019 estimate. Public debt service is projected at 1 011.9 billion, of which 472.2 billion external debt and 539.7 billion domestic debt. Ultimately, the state budget is balanced in revenue and expenditure at the sum of 4 951.7 billion, down by 233.3 billion (-4.5%) compared to the amended 2019 finance law. The macroeconomic outlook and the 2020 budgetary forecasts presented above could be negatively affected by the economic disturbances caused by the coronavirus pandemic, referred to as covid-19, which has hit practically all the countries of the world since the beginning of the year and which raises fears of a decline in global growth. In its interim report on economic outlook released on 2 March 2020, the OECD revised downwards its forecast for growth in the world economy for 2020 from 2.4% to 2.9%. China and the European Union, Cameroon's largest trading partners, are badly hit and this could have repercussions on the Cameroonian economy as well as cause a drop in oil prices as observed since March 2020.
Table 4:: Budgetary forecasts (in billions)
LF. 2019 Estimates 2019 LF 2020 Variations a b (b- a) A - TOTAL RESOURCES (I + II + III) 4 850,5 5 380,5 4 951,7 -428,9 I - INTERNAL REVENUES 3 529,5 3 695,7 3 617,2 -78,6 1-Oil and gas revenues 450,0 531,8 443,01 -88,8 2-Gross non-oil revenue 3 079,5 3 164,0 3 174,2 10,2

• Non-oil revenue 3 079,5 3 164,0 3 174,2 10,2
  of which: - Taxes and duties 2 058,0 2 070,0 2 103,0 33,0

• Customs revenue 841,5 912,0 859,2 -52,8
  II - LOANS AND GRANTS 1 321,0 1 684,8 1 334,5 -350,3 Of which: - Issue of public securities 260,0 350,0 320,0 -30,0 B - TOTAL EXPENSES (I + II + III + IV) 4 850,5 5 380,8 4 951,7 -429,1 I- Current expenses 2 465,5 2 531,0 2 443,5 -87,5 II- Capital expenditure 1 327,6 1 428,8 1 496,3 67,5 III- Net loans 0,0 75,8 0,0 -75,8 IV- Public debt 1 057,3 1 345,2 1 011,9 -333,3 Source: MINFI/DP
  C. Banking sector
  In recent decades, banking activity in Cameroon has experienced consolidation thanks to measures taken by regulatory authorities to strengthen its stability. As of 31 December 2019, the banking sector in Cameroon had 15 active banks, the majority of which are large international groups. These include:

Information Note |13

• Banque Internationale du Cameroun pour l'Epargne et le Crédit (BICEC) ;
• Société Générale Cameroun (SGC) ;
• Société Commerciale de Banque (SCB) ;
• Standard Chartered Bank Cameroon (SCBC) ;
• Afriland First Bank (AFB) ;
• Commercial Bank Cameroun (CBC) ;
• Citibank Cameroon ;
• Ecobank Cameroun ;
• Union Bank of Cameroon (UBC) ;
• National Financial Credit Bank (NFC-Bank) ;
• United Bank for Africa (UBA) ;
• Banque Atlantique Cameroun (BACM) ;
• Banque Gabonaise pour le Financement International (BGFI-Bank) ;
• Banque Camerounaise des Petites et Moyennes Entreprises (BC-PME) ;
• Crédit Communautaire d’Afrique Bank (CCA-Bank).
  As of 31 December 2019, the total balance sheet of banks operating in Cameroon amounted to CFA francs 6 472.40 billion. Deposits stand at CFA francs 487.00 billion for a total amount of credits of CFA francs 3 664.40 billion. The net profit of all the banks stands at CFA francs 75.5 billion. D. Microfinance sector As of 31 December 2019, Cameroon had 418 accredited microfinance Institutions (MFIs), of which 88.04% in the first category (123 self-employed and 245 in the network), 11.24% in the second category (47 institutions) and 0.72% in the third category. Between the end of December 2017 and the end of December 2018, the total balance sheet of MFIs dropped from 816.40 to 708.50 (-107.80) billion. Deposits collected by MFIs fell from
  668.20 to 514.20 (-154) billion during the period under review, a drop of 23.50% on a year-on￾year basis. The loans granted by the MFIs dropped from 464.20 to 385.10 (-79.10) billion
  between the end of December 2017 and the end of December 2018, a drop of 17.00% year-on￾year. At the end of December 2019, the total balance sheet of the microfinance sector was 32.80% of that of the commercial banks. MFI deposits and credits represent 18.50% and 22.90% of bank deposits and credits respectively. E. Financial market

1. Institutional and regulatory framework
   The Cameroonian financial market was established by Law N ° 99/015 of 22 December 1999 on establishment and organization of a financial market. Its purpose is to conduct transactions of private and public securities, within the framework of regulated investment services. Following the decision by CEMAC Heads of State in October 2017 to merge the two financial markets of the Economic and Monetary Community of Central African States (CEMAC), the additional act unifying the two CEMAC financial markets, namely the Central African Securities Exchange (BVMAC) and the Douala Stock Exchange (DSX), was signed on February 19, 2018.

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Its main organs are:

• The Central African Financial Market Supervisory Commission (COSUMAF), which is
  the sole regulatory authority, established in Libreville, Republic of Gabon, responsible for supervision and control of the market and actors;
• the Central African Securities Exchange (BVMAC), which is a single market enterprise,
  established in Douala, Republic of Cameroon, ensures management and transactions of the Regional Stock Exchange;
• the Bank of Central African States (BEAC), which is the sole Central Depositary,
  ensuring the conservation of all securities circulating on the CEMAC capital market.

2. Some indicators of the new BVMAC
   The BVMAC has three compartments: the equity securities compartment, the debt securities compartment and the over-the-counter compartment. Updated on 26 February 2020, the capital securities compartment includes four securities: SEMC, SOCAPALM, SAFACAM and SIAT GABON for a total market capitalization of CFAF 120 624 000 000. The BVMAC bond compartment has seven (07) securities (ALIOS.02, EOG.02, EOG.04, ALIOS.01, GSEZ, EOCG.01, and ECMR04). Market capitalization The Value of the transactions is estimated at CFAF 41 367 080 including a capitalization of shares amounting to CFAF 253 245 591 554 and a capitalization of Bonds amounting to CFAF 775 635 162 828. 3.Financial market outlook As part of strengthening of financial integration, CEMAC Heads of State decided at the end of heir Conference held on 21 October 2017 in Chad, to merge the two financial markets of CEMAC: Douala Stock Exchange (DSX) and the Central African Securities Exchange (BVMAC). Supervised by BEAC, the process was finalized in 2019 with the new configuration of the regional financial market structured as follows:

• a single regulatory authority: the Banking Commission of the Central African States
  (COSUMAF), based in Libreville (Gabon), independent and endowed with the powers and means necessary to regulate the unified financial market;
• a single stock exchange: BVMAC, headquartered in Douala (Cameroun), resulting from
  the merger of the two existing financial markets;
• a single central custodian of the financial market, which will be temporarily housed in the
  central services of the BEAC in Yaoundé.
  4.The state of cameroon’s interventions on the capital markets Since 2010, the State of Cameroon resorts to raising funds regularly on the capital markets, in particular through syndication on the national financial market and auction on the open subscription public securities market of BEAC. As of 29 February 2020, the total amount of securities issued on the capital market amounted to CFAF 2 934.95 billion.

Information Note |15
CFAF 1 699.6 billion were raised until the end of 29 February 2020 by auction on the open subscription public securities market of BEAC, of which CFAF 273.72 billion of OTA with 2 to 5-year maturity and, CFAF 1 695.89 billion of BTA with 13, 26 and 52 weeks maturities. CFAF 795 billion were raised by syndication on the national financial market, CFAF 200 billion in 2010 at 5.6% net interest rate, CFAF 80 billion in 2013 at 5.9% net interest rate, CFAF 150 billion in 2014 with 5.5% net interest rate, CFAF 165 billion in 2016 at the interest rate of 5.5% net and CFAF 200 billion in 2018 at 5.6% net interest rate, all with a 5-year maturity, amortizable every quarter after a year of deferral. The outstanding amount of securities issued by syndication amounted to CFAF 282.5 billion on the same date, including CFAF 82.5 billion for the loan made in 2016 and CFAF 200 billion for the loan completed in 2018.
Table 5: Summary of securities issued by syndication
Security Code Year of issuance
Amount
(in billions of
CFAF)
Maturities coupon rate
Amortizati on (in billions of
CFAF)
Interests paid (in billions of
CFAF)
Outstanding amount as of 29
February 2020
(in billions of
CFAF)
ECMR 5.60% net
2010-2015 2010 200 2015 5.60% 200 39.2 0
ECMR 5.90% net
2013-2018 2013 80 2018 5.90% 80 16.52 0
ECMR 5.50% net
2014-2019 2014 150 2019 5.50% 150 28.88 0
ECMR 5.50% net
2016-2021 2016 165 2021 5.50% 82.5 24.96 82.5
ECMR 5.50% net
2018-2023 2018 200 2023 5.60% 0 11.20 200
Source: MINFI/DITRE

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Table 6: History of issues on the BEAC open subscription securities market between 2018 and 02/29/2020
Security Code Amount Weighted
Average Rate Auction Date Maturity Date
CM1200000576 BTA-26 20-JUL-2018 5 000 3.70% 17-Janv-18 20-Jul-18 CM1100000551 BTA-13 27-APRIL-2018 5 000 3.23% 24-Janv-18 27-Apr-18 CM1100000569 BTA-13 11-MAY-2018 5 000 3.09% 07-Febr-18 11-May-18 CM1100000577 BTA-13 18-MAY-2018 5 000 3.04% 14-Febr-18 18- May -18 CM1100000585 BTA-13 25-MAY-2018 5 000 2.95% 21-Febr-18 25- May -18 CM1200000584 BTA-26 31-AUG-2018 10 000 3.03% 28-Febr-18 31-August-18 CM1200000592 BTA-26 07-SEPT-2018 10 000 3.01% 07-March-18 07-Sept-18 CM1200000601 BTA-26 14-SEPT-2018 10 000 3.03% 14- March -18 14-Sept-18 CM1100000593 BTA-13 29-JUNE-2018 5 000 2.87% 28- March -18 29-June-18 CM1100000618 BTA-26 12-OCTO-2018 5 000 3.00% 11-Apr-18 12-Oct-18 CM1300000401 BTA-52 19-APRIL-2019 5 000 3.40% 18- Apr -18 19-Apr-19 CM1100000601 BTA-13 27-JUL-2018 7 000 2.90% 25- Apr -18 27- Jul -18 CM1200000626 BTA-26 02-NOV-2018 7 000 3.15% 02-May-18 02-Nov-18 CM1100000619 BTA-13 10-AUG-2018 7 000 3.00% 09- May -18 10- August -18 CM1100000627 BTA-13 17-AUG-2018 7 000 3.25% 16- May -18 17- August -18 CM1100000635 BTA-13 24-AUG-2018 7 000 2.98% 23- May -18 24- August -18 CM1100000643 BTA-13 07 SEPT 2018 10 000 2.91% 06-June-18 07-Sept-18 CM1200000634 BTA-26 21-DECE-2018 7 000 2.70% 20- June -18 21-Dec-18 CM1200000642 BTA-26 28-DECE-2018 7 000 2.81% 27- June -18 28-Dec-18 CM1100000650 BTA-13 12-OCTO-2018 7 000 2.61% 11-Jul-18 12-Oct-18 CM1100000668 BTA-13 19-OCTO-2018 7 000 2.67% 18- Jul -18 19-Oct-18 CM1200000659 BTA-26 25-JAN-2019 7 000 2.90% 25- Jul -18 25-Jan-19 C M1100000676 BTA-13 02-NOVE-2018 7 000 2.67% 01-Agust-18 02-Nov-18 CM1100000648 BTA-13 09-NOVE-2018 10 000 2.75% 08- Agust -18 09-Nov-18 CM1100000692 BTA-13 16-NOVE-2018 10 000 2.69% 15- Agust -18 16-Nov-18 CM1100000700 BTA-13 23-NOVE-2018 10 000 2.60% 22- Agust -18 23-Nov-18 CM1200000667 BTA-26 08-MARCH-2019 10 000 2.71% 05-Sept-18 08-March-19 CM1200000675 BTA-26 15-MARCH-2019 10 000 2.71% 12-Sept-18 15-March-19 CM1300000419 BTA-52 20-SEPT-2019 - 19-Sept-18 20-Sept-19 CM1100000718 BTA-13 28-DECE-2018 10 000 2.54% 26-Sept-18 28-Dec-18 CM1100000726 BTA-13 04-JAN-2019 10 000 2.60% 03-Oct-18 04-Jan-19 CM1100000734 BTA-13 11-JANV-2019 10 000 2.56% 10-Oct-18 11-Jan-19 CM1200000683 BTA-26 26-APRIL-2019 10 000 2.62% 24-Oct-18 26-Apr-19 CM1200000691 BTA-26 10-MAY-2019 10 000 2.54% 07-Nov-18 10- May -19 CM1100000742 BTA-13 15-FEB-2019 10 000 2.63% 14-Nov-18 15-Febr-19 CM1100000759 BTA-13 22-MARCH-2019 10 000 2.59% 19-Dec-18 22-March-19 CM1100000767 BTA-13 29-MARCH-2019 10 000 2.60% 26-Dec-18 29- March -19 CM1100000775 BTA-13 12-APRIL-2019 5 000 2.51% 09-Jan-19 12-Apr-19 CM1200000709 BTA-26 19-JUL-2019 10 000 2.49% 16-Jan-19 19- Jul -19 CM1200000717 BTA-26 26-JUL-2019 7 000 2.46% 23-Jan-19 26- Jul -19 CM1300000427 BTA-52 31-JAN-2020 10 000 2.72% 30-Jan-19 31-Janv-20 CM1300000435 BTA-52 07-FEB-2020 10 000 2.69% 06-Febr-19 07-Febr-20 CM1200000725 BTA-26 16-AUG-2019 10 000 2.42% 13- Febr -19 16- August -19 CM2J0000014 OTA-3,7% 22-FEBR-2022 14 770 000 000 98.51% 20- Febr -19 22-Febr-22 CM1200000733
BTA-26 30-AUG-2019 50 000 2.54% 27- Febr -19 30- August -19 CM1100000783 BTA-13 21-JUNE-2019 20 000 2.48% 20-March-19 21- June -19

Information Note |17
CM1200000741 BTA-26 11-OCTO-2019 10 000 2.34% 10-Apr-19 11-Oct-19 CM1300000443 BTA-52 17-APR-2020 10 000 2.81% 17-Apr-19 17-Apr-20 CM1200000758 BTA-26 08-NOVE-2019 10 000 2.32% 08-May-19 08-Nov-19 CM2J00000022 OTA-03 ANS 4,00% 24- MAY-2022 72 540 000 000 99.67% 22- May -19 24- May -22 CM2K0000011 OTA-04 ANS 4,75% 31- MAY-2023 48 482 000 000 98.28% 29- May -19 31- May -23 CM2B00000020 OTA-05 ANS 5,60% 14- JUNE-2024 53 585 100 000 98.18% 12-June-19 14- June -24 CM1100000791 BTA-13 20-SEPT-2019 20 000 2.24% 19-June-19 20-Sept-19 CM1100000809 BTA-13 11-OCTO-2019 25 000 2.34% 10-Jul-19 11-Oct-19 CM1200000766 BTA-26 17-JAN-2020 30 000 2.57% 17-Jul-19 17-Janv-20 CM2B00000020 OTA-05 ANS 5,60% 14- JUNE-2024 MN1 18 418 000 000 99.01% 31-Jul-19 14- June -24 CM1100000817 BTA-13 08-NOVE-2019 20 000 2.32% 07-August-19 08-Nov-19 CM2J00000022 OTA-03 ANS 4,00% 24- MAY-2022 MN1 10 500 000 000 98.99% 22-May-19 24- May -22 CM1200000774 BTA-26 28-FEBR-2020 30 000 2.37% 28- August -19 28-Febr-20 CM1100000825 BTA-13 06-DECE-2019 20 000 2.41% 04-Sept-19 06-Dec-19 CM1200000782 BTA-26 20-MARCH-2020 10 000 2.24% 18-Sept-19 20- March -20 CM1200000790 BTA-26 27-MARCH-2020 16 010 000 000 2.46% 25-Sept-19 27- March -20 CM1200000808 BTA-26 10-APRIL-2020 20 000 2.63% 09-Oct-19 10-Apr-20 CM2A00000047 OTA-2 ANS3,40% 25- OCTO-2021 21 910 000 000 98.71% 23-Oct-19 25-Oct-21 CM1200000816 BTA-26 08-MAY-2020 20 000 2.63% 06-Nov-19 08- May -20 CM1200000824 BTA-26 15-MAY-2020 20 000 2.71% 13-Nov-19 15- May -20 CM1200000832 BTA-26 05-JUNE-2020 20 000 2.66% 04-Dec-19 05- June -20 CM1200000840 BTA-26 10-JUL-2020 20 000 2.13% 08-Jan-20 10- Jul -20 CM1300000468 BTA-52 15-JAN-2021 10 000 2.69% 15-Jan-20 15-Janv-21 CM1200000857 BTA-26 31-JUL-2020 47 000 2.69% 29-Jan-20 31-Jul-20 CM1200000865 BTA-26 14-AUG-2020 5 200 000 000 2.67% 12-Febr-20 14- August-20 CM1300000476 BTA-52 19-FEBRUARY￾2021 20 000 3.35% 19-Febr-20 19-Febr-21 Source: DGTCFM/DITRE F. Public debt situation in Cameroon Over the past decade, Cameroon's public debt has experienced a relatively upward trend. As shown in the table below, as of 31 December 2019, the stock of public and public guaranteed debt is estimated at CFAF 8 424 billion and represents about 37.3% of GDP, compared to CFAF 5 039 billion or 30% of GDP at the end of 2015. This evolution observed over the last five years (67.2% increase) is mainly due to (i) drawings on statutory advances granted by development partners (IMF, World Bank, AfDB and France) in the context of the Economic and Financial Program, and (ii) the acceleration of work on major infrastructure projects.

18| Information Note
Table 7: Evolution of the Public Debt
Rubriques 31 décembre
2015 *
31 decembre
2016 *
31 Décembre
2017 *
31 Décembre
2018 *
31 Décembre
2019 *
Dette extérieure 3 664 3 942 4 649 5 651 6 445 Multilatérale 1 032 1 152 1 450 1 995 2 345 dont appuis budgétaires 273 582 749 Bilatérale 1 704 1 953 2 316 2 618 3 016 dont appuis budgétaires 66 131 197 Commerciale 928 837 884 1 039 1 084 Dette intérieure 1 284 1 304 1 578 1 691 1 942 Titres publics 295 370 307 440 706 Emprunt consolidé BEAC 138 231 577 Dette structurée 587 513 569 581 579 Dette non structurée 264 190 125 93 80 Dette Publique Directe 4 948 5 246 6 227 7 342 8 387 Dette avalisée 90 66 50,9 46 37 Dette Publique et à Garantie Publique 5 039 5 312 6 278 7 388 8 424 dont appuis budgétaires total 339 714 945 Dette extérieure 72,7% 74,2% 74,1% 76,5% 76,5% Dette intérieure 25,5% 24,6% 25,1% 22,9% 23,0% Dette Publique Directe 98,2% 98,8% 99,2% 99,4% 99,6% Dette avalisée 1,8% 1,2% 0,8% 0,6% 0,4% Dette Publique et à Garantie Publique 100,0% 100,0% 100,0% 100,0% 100,0% dont appuis budgétaires total 0,0% 0,0% 5,4% 9,7% 11,2% Dette extérieure 21,8% 20,6% 22,9% 26,3% 28,6% Dette intérieure 7,6% 6,8% 7,8% 7,9% 8,6% Dette Publique Directe 29,4% 27,5% 30,6% 34,2% 37,2% Dette avalisée 0,5% 0,3% 0,3% 0,2% 0,2% Dette Publique et à Garantie Publique 30,0% 27,8% 30,9% 34,4% 37,3% dont appuis budgétaires total 0,0% 0,0% 1,7% 3,3% 4,2%

• données définitives données semi-défintives * données provisoires
  En pourcentage du PIB
  Montants en Milliards de FCFA
  En pourcentage du total
  In terms of composition, the public and public guaranteed debt as at 31 December 2019 is composed of (i) 77.1% external debt valued at CFAF 6,650 billion, of which 25.7% is concessional debt, 57.6% non-concessional debt and 16.7% budget support, (ii) 22.5% domestic debt evaluated at CFAF 1 942 billion and 0.4% guaranteed debt, or CFAF 37 billion. As shown in the graph below, as at 31 December 2019, external debt is made up respectively of 41% of debt owed to bilateral partners (CFAF 3 016 billion), 32% of debt owed to multilateral donors (CFAF 2 345 billion), and 14 % of the commercial debt (CFAF 1 084 billion) and budget support (CFAF 945 billion). Graph 1: Distribution of external debt With regard to domestic debt, it is made up of 36% of public securities (CFAF 706 billion), of which 30% BEAC consolidated debt (CFAF 579 billion) and structured debt (CFAF 577 billion) and 4% unstructured debt (CFAF 80 billion). Securities held by non￾residents, whose outstanding stock at 31 December 2019 is estimated at CFAF 12.4 billion, are classified as external debt.

Information Note |19
Graph 2: Distribution of domestic debt
Concerning assessment of the exchange risk at 31 December 2019, the public debt portfolio is relatively diversified with a proportion of 76.3% of debt in foreign currency including 29.4% of debt in Euro. Taking into account the parity between the CFAF and the Euro, the proportion of public debt actually subject to exchange rate risk is estimated at 46.9%. Especially, the breakdown of external debt in foreign currency is presented in the graph below, all of the internal debt being denominated in CFAF:
Graph 3: Composition of foreign currency debt
Source : MINFI/CAA
G. Medium-Term Debt Strategy for 2020-2022
The public debt and public debt management strategy paper appended to the 2020 Finance Law contains the 2020-2022 medium-term debt strategy as well as the annual financing plan for the 2020 financial year. This document is consistent with the macroeconomic and budgetary framework drawn up within the framework of the Finance Law and in compliance with the

20| Information Note commitments made with the IMF according to the Economic and Financial Program (PEF) in terms of debt ceiling and disbursement ceiling. The SEMT 2020-2022 shall be carried out in pursuit of (i) application of CEMAC Regulations, setting the frame of reference for the policy of public debt and public debt management, and (ii) optimum search for financing to cover the State's financing need, while optimizing costs and risks and, promoting the development of the domestic market. At the operational level, emphasis will be placed on the one hand, on the timely settlement of debt service and the clearance of all internal and external arrears during the period under review, and on the other hand, on the efficient mobilization of external resources and public securities issues. In terms of composition, the 2020-2022 SEMT will ultimately aim to achieve a global portfolio of 77% external debt (foreign currency debt, of which 25% in US dollars) and 23% domestic debt (debt in CFAF), as against '' a composition projected at the end of 2019 at 77.8% of external debt; 21.7% of domestic debt and 0.4% of guaranteed debt. The government’s debt need (including budget support) for the period 2020-2022 is CFAF 3 440 billion, of which CFAF 1 217 billion shall be covered in 2020. In this respect, the Government shall resort to external and internal loans for implementation of projects and the financing of short-term cash needs, but also for budget support estimated at about CFAF 100 billion in 2020. The fixing of the new external commitments ceiling for the period 2020-2022 takes account of the constraints linked to the capacity to reimburse the contracted debt and the authorities' desire to maintain the debt sustainable while reducing the high risk of debt distress. It is set at CFAF 1 950 billion, including 650 billion FCFA in 2020 (300 billion FCFA for concessional loans and 350 billion FCFA for non-concessional loans). The ceiling for new domestic commitments over the same period is 1,030 billion FCFA, including CFAF 350 billion in 2020 as shown in the table below. The ceiling on guarantee to be granted by the State is set at CFAF 120 billion for the period 2020-2022, including 40 billion CFAF in 2020. The optimal strategy adopted aims to bring the share of new external borrowing to 72% in 2020, and set a target of 75% of new external debt in 2021 and 80% in 2022, by increasing the share of concessional and semi-concessional multilateral financing. The targets set are as follows:

• debt / GDP ratio of 35.4% at the end of 2022 as against 38.3% estimated at the end of
  2019;
• a minimized cost of debt of 2.2%;

Information Note |21

• a reduced refinancing risk due to the increase in the average duration of the overall
  portfolio, which would drop from 7.3 years in 2019 to 8.4 years at the end of 2022;
• an interest rate risk also minimized due to the increase in the share of debt with fixed
  interest rate from 85.4% in 2019 to 86% in 2022;
• an average time to repay the debt, increasing from 6.6 years at the end of 2019 to 7.6
  years at the end of 2022.
  Table 8: Breakdown of new 2020 commitments (Domestic debt)
  Debt Instruments Type of intrest rate
  Maturity
  (year)
  Grace
  Period
  (year)
  Weight Amount (in billions of CFAF)
  Fungible Treasury bill(BTA)
  Fixed 1 0 28.6% 100
  Fungible treasury bonds(OTA/OT)
  Fixed 2-7 1-3 62.9% 220
  Bank borrowing Fixed 10 3 8.6% 30
  Total 100% 350
  Source : MINFI/CAA
  H. 2017-2020 ECONOMIC AND FINANCIAL PROGRAM
  On 26 June 2017, Cameroon concluded with the International Monetary Fund (IMF), an Agreement on a three-year Programme (2017-2020), supported by the Extended Credit Facility of the IMF. Other partners are supporting Cameroon’s efforts to achieve the Programme’s objectives, namely the World Bank, the African Development Bank, the European Union and AFD. The overall volume of expected drawings, in the form of budget support, is CFAF 1 302 billion.

1. Program objectives
   The 2017-2020 Economic and Financial Programme (PEF) is part of the collective effort of CEMAC countries to deal with the economic crisis that has shaken the sub-region since the second half of 2014, following the fall in world prices of commodities, including oil, and the effects of the security crises experienced by some States in the area. The objective of the Programme is therefore to restore external and budgetary viability, to improve Cameroon’s economic competitiveness, while supporting growth and strengthening financial sector resilience.
2. State of implementation
   At the end of the IMF Executive Board held on 22 January, 2020 in Washington DC, the fifth (5th) review of Cameroon's PEF was conclusive. The Board also approved the request for

22| Information Note exemption for the non-observance of a performance criterion as well as that for the modification of performance criteria. The 5th review resulted in an immediate disbursement of SDR 55.20 million, increasing to SDR 427.80 million the total amount of drawings since the signing of the programme (June 2017). Since the launch of the programme, economic growth stands at an annual average of 4%, despite the persistence of the above-mentioned crises. Inflation is under control and stood at 1.1% in 2018. Fiscal policy measures made it possible to considerably reduce the overall budgetary balance, which stood at 2.7% of GDP at the end of 2018 as against more than 6% when the programme started. The target for 2019 was 2% of GDP. The reduction of the public deficit is mainly due to: efforts to mobilize non-oil revenues by widening the tax base; rationalization of expenditure and strengthening of budgetary discipline; debt control (34.2% of GDP at the end of 2018). These performances can be achieved without prejudice to social expenditure, which is preserved during the Programme. Externally, the currency coverage rate improved, to stand at around 3 months of exports compared to 1.5 months at the start of the Programme.
3. Prospects
The Economic and Financial outlook remains encouraging. The achievement of the objective of macroeconomic and budgetary stability is on track, but an additional effort is necessary to reach growth rates more suited to Cameroon’s emergence ambitions. Adjustments are envisaged in the content of the programme for a more sustained economic recovery. I.FRAMEWORK OF THE OPERATION Since 2010, the State of Cameroon resorts to raising funds on the domestic capital market (money and financial markets), in order to finance a vast investment programme, including growth and employment generating projects, notably port, road and energy infrastructure. These huge investments fall in line with the guidelines of its Growth and Employment Strategy Paper (GESP), which seeks to make Cameroon an emerging country by 2035. Efforts deployed so far have permitted the execution of some major investment projects as follows:

• Kribi deep seaport;
• Second bridge over the River Wouri in Douala;
• East and West gateways into Douala;
• East gateway into Yaounde;
• Lom-Pangar hydro-electric dam;
• Mekin dam;
• Construction of the second access road into Bamenda;

Information Note |23

• Construction of the Kumba-Mamfe road;
• Etc.
  And the launch of other projects such as:
• Yaounde – Douala highway;
• Yaounde – Nsimalen highway;
• Rehabilitation and construction of sports complexes and access routes in many Regions
  of Cameroon within the prospect of the organization of the 2019 AFCON postponed to 2021;
• tarring of the Foumban-Manki- MAPE connecting road and construction of the
  MAPE bridge;
• tarring of the Mengong-Sangmelima road (73 km) ;
• tarring of the Bamenda-Ekok-Batchuo-Akagbe corridor;
• Etc.
  Pursuant to the 2020 Finance Law, State budget revenue and expenditure stand at CFA F 4 850.50 billion of which CFA F 350, 00 billion meant to finance investment projects shall be generated through the issuance of public securities. It is in this context that the State of Cameroon, represented by the Minister of Finance, duly authorized by Presidential decree, seeks to raise on the money market, a total amount of CFA F 220 000 (two hundred and twenty billion) broken down into 03 (three) fund-raising operations through the issuance of Fungible Treasury Bonds, with CFAF 50 000 (fifty billion) for the 2-year maturity, CFA F 70 000 (seventy billion) for the respective 3- year maturities of CFAF 100 000 (one hundred billion) for the 5 (five) years maturity In accordance with the above-mentioned CEMAC regulation, the final characteristics of these transactions shall be notified to Primary dealers by MINFI within the prescribed regulatory timeframes.

1. Objective of the loans
   The funds collected through this OTA issuance programme shall be used primarily to finance all of the projects listed in the 2020 Finance Law as shown below:
   Table 9: List of eligible projects by Sector.
   Sector Projects Grants in CP
   Infrastructure
   Road development and rehabilitation 63 200 000 000 Sports 73 500 000 000 Water and Energy 38 300 000 000 Other infrastructure Health equipment and other projects 45 000 Total 220 000 Source : MINFI/DIRTRE

24| Information Note
Graph 4: Breakdown of projects by sector
29%
33%
6%
32%
Titre du graphique
Aménagement et réhabilitation des routes
Sportives
Eau et Energie
Autres infrastructures
2. Characteristics of issuance
During the 2020 financial year, the state plans to come up with a programme for issuing public securities, in particular OTA, for an amount of CFAF 220.00 billion in accordance with the financing plan captured in the medium term debt strategy (MTDS) appended to the 2020 Finance Law. The characteristics of the securities to be issued are shown in the following tables: assignment of the proceed generated from the issuance of fungible treasury bonds.

Information Note |25
Table 10: OTA – 2 years
TERMS AND CONDITIONS OF THE FIRST ISSUANCE:
OTA WITH A 2-YEAR MATURITY
Type of securities FUNGIBLE TREASURY BONDS (OTA) Form of securities Dematerialized securities, kept in the books of SVT and CRCT of BEAC, acting as the central depository. Issuance procedure Invitation to tender launched by the Public Treasury to SVT. followed by bidding organized by BEAC Amount of the issuance CFA F 50 000 (fifty billion) Nominal unit value of a OTA CFA F 10 000 Number of securities to be issued 5 000 000 bonds Maturity 2 years Repayment of the capital In fine (2022) Payment of interests Interests shall be payable yearly on the basis of the expressed rate. They shall be calculated on the basis of the calendar year, that is. 365 or 366 days Interest rate 3.50% Physical organization National Head Office of BEAC, in conjunction with CRCT shall ensure the physical organization of the issuance. Repayment guarantee Securities shall be issued by Cameroon’s Public Treasury and shall enjoy the sovereign guarantee of the State. An agreement to automatically deduct from Treasury’s Single account has been signed with BEAC as additional guarantee. Indicative periods of bids Bids shall be dematerialized during the indicative period from 4pm 16-29 April 2020. Date and time limit for the submission of bids Wednesday, 29 April 2020 at 09:00 a.m. Date of opening of bids Wednesday, 29 April 2020 at 03:00 p.m. Value date of Securities Friday 1 st May 2020 at 09:00 a.m. Terms of subscription of securities Access to the primary market for open-ended public securities is reserved for the Primary Dealers (SVTs) listed above. All other investors may acquire the securities on the secondary market through the SVTs of their choice. In this case, they will sign a securities account agreement with the SVT after the tender Submissions are dematerialized and will be done via the DEPO-X application. Subsequent Assimilations In the event that the Issuing authority subsequently issues new securities enjoying in all respects the same rights as those of this issue, it may, without requiring the consent of the holders and provided that the issuance contracts so provide, assimilate all the securities of successive issues. thus unifying all operations relating to their management and negotiation Refinancing at BEAC counters Fungible Treasury Bonds are eligible for refinancing by the Central Bank under the conditions set by the Monetary Policy Committee and are negotiable on the secondary market Taxation of securities Interest received on Treasury Bonds is exempt from tax in Cameroon Buyback or exchange of securities The issuing State shall authorise itself throughout the duration of the life of the securities to exchange or repurchase them on the market Weighting of securities The OTAs subject to this operation have a zero weighting (0%) in the banks' balance sheets, in accordance with letter Source : MINFI/DIRTRE

26| Information Note
Table 11: OTA - 3Years
TERMS AND CONDITIONS OF THE SECOND ISSUANCE :
OTA WITH 3-YEAR MATURITY
Type of securities FUNGIBLE TREASURY BONDS (OTA) Form of securities Invitation to tender launched by the Public Treasury to SVT, followed by bidding organized by BEAC Issuance procedure Tenders issued by the Public Treasury for the attention of SVTs, followed by the auction organized by the BEAC Amount of the issuance CFA F 70 000 (fifty billion) Nominal unit value of a OTA CFA F 10 000 Number of securities to be issued 7 000 000 bonds Maturity 3 years Repayment of the capital In fine (2023) Payment of interests Interests shall be payable yearly on the basis of the expressed rate. They shall be calculated on the basis of the calendar year, that is 365 or 366 days Interest rate 4.00% Physical organization National Head Office of BEAC. in conjunction with CRCT shall ensure the physical organization of the issuance. Repayment guarantee Securities shall be issued by Cameroon’s Public Treasury and shall enjoy the sovereign guarantee of the State. An agreement to automatically deduct from Treasury’s Single account was signed with BEAC as additional guarantee. Indicative periods of bids The Bids indicative period from 09 – 15 April 2020. Date and time limit for the submission of bids Wednesday. 15 April 2020 at 09:00 a.m. Date of opening of bids Wednesday. 15 April 2020 at 03:00 p.m. Value date of securities Friday. 17 April 2020 at 09:00 a.m. Terms of subscription of securities Access to the primary market for open-ended public securities is reserved for the Primary Dealers (SVTs) listed above. All other investors may acquire the securities on the secondary market through the SVTs of their choice. In this case. they will sign a securities account agreement with the SVT after the tender. Bids shall be dematerialized via DEPO-X application. Subsequent Assimilations Access to the primary market for open-ended public securities is reserved for the Primary Dealers (SVTs) listed above. All other investors may acquire the securities on the secondary market through the SVTs of their choice. In this case. they will sign a securities account agreement with the SVT after the tender Refinancing at BEAC counters Fungible Treasury Bonds are eligible for refinancing by the Central Bank under the conditions set by the Monetary Policy Committee and are negotiable on the secondary market Taxation of securities Interest received on Treasury Bonds is exempt from taxes in Cameroon. Buyback or exchange of securities The issuing State shall authorise itself throughout the duration of the life of the securities to exchange or repurchase them on the market. Weighting of securities The OTAs subject to this operation have a zero weighting (0%) in the banks' balance sheets. in accordance with letter------------------------ Source : MINFI/DIRTRE

Information Note |27
Table 12: OTA-5 years
TERMS AND CONDITIONS OF THE THIRD ISSUANCE:
OTA WITH 5-YEAR MATURITY
Type of securities FUNGIBLE TREASURY BONDS (OTA) Form of securities Dematerialized securities, kept in the books of SVT and CRCT of BEAC, acting as the central depository. Issuance procedure Invitation to tender launched by the Public Treasury to SVT. followed by bidding organized by BEAC Amount of the issuance CFA F 100 000 (hundred billion) Nominal unit value of a OTA CFA F 10 000 Number of securities to be issued 5 000 000 bonds Maturity 5 years Repayment of the capital In fine (2025) Payment of interests Interests shall be payable yearly on the basis of the expressed rate. They shall be calculated on the basis of the calendar year, that is, 365 or 366 days Interest rate 5.70% Physical organization National Head Office of BEAC, in conjunction with CRCT shall ensure the physical organization of the issuance. Repayment guarantee Securities shall be issued by Cameroon’s Public Treasury and shall enjoy the sovereign guarantee of the State. An agreement to automatically deduct from Treasury’s Single account has been signed with BEAC as additional guarantee. Indicative periods of bids The Bids indicative period shall run from 08 to 10 April 2020. Date and time limit for the submission of bids Wednesday. 08 April 2020 at 09:00 a.m. Date of opening of bids Wednesday. 08 April 2020 at 03:00 p.m. Value date of securities Friday. 10 April 2020 at 09:00 a.m. Terms of subscription of securities Access to the primary market for open-ended public securities is reserved for the Primary Dealers (SVTs) listed above. All other investors may acquire the securities on the secondary market through the SVTs of their choice. In this case, they will sign a securities account agreement with the SVT after the tender. Bids shall be dematerialized via DEPO-X application. Subsequent Assimilations In the event that the Issuing authority subsequently issues new securities enjoying in all respects the same rights as those of this issue, it may, without requiring the consent of the holders and provided that the issuance contracts so provide, assimilate all the securities of successive issues, thus unifying all operations relating to their management and negotiation. Refinancing at BEAC counters Fungible Treasury Bonds are eligible for refinancing by the Central Bank under the conditions set by the Monetary Policy Committee and are negotiable on the secondary market Taxation of securities Interest received on Treasury Bonds is exempt from tax in Cameroon Buyback or exchange of securities The issuing State shall authorise itself throughout the duration of the life of the securities to exchange or repurchase them on the market Weighting of securities (*) The OTAs subject to this operation have a zero weighting (0%) in the banks' balance sheets in accordance with letter ------------------------- Source : MINFI/DIRTRE

28| Information Note
(*) The weighting of public debt securities in CEMAC countries is dependent on compliance by the issuing State with the 4 Community convergence criteria. Since June 6, 2018, Cameroon has not met two out of four convergence criteria, namely:

• The criterion of the basic budgetary balance (weighting of 20%); and
• The criterion of the accumulation of arrears (weighting of 65%).
  Table 13: Convergence criteria
  Reference budgetary balance
  (% nominal GDP)
  Average annual inflation rate (%)
  Outstanding public debt (% nominal GDP)
  Payment arrears (in billions of
  CFAF)
  External Domestic
  Standards ≥ -1.5% ≤3% ≥ -70% 0 0
  Cameroon -2.2 0.6 33.3 ND >0
  Consequently, the weighting rate applicable on the commitments of banks to the State of Cameroon is 85%. However, the Issuer having changed the mechanism for securing the reimbursement of this loan by entrusting management to the BEAC, COBAC has made this loan eligible for a weighting rate of 0%.

3. Terms and conditions of repayment of a bond
   The annual interest payment and the repayment of the principal at maturity have been simulated in the indicative amortization table below for a Bond of CFAF 10.000.
   Table 14: Amortization of a 2-year maturity bond (in millions of CFAF)
   OTA -2 years. If interest rate tendered = 3.50% Due dates Outstanding at the start of the period Interests Amortization Annuities Outstanding at the end of the period 24/04/2020 10 000 - - - 10 000 24/04/2021 10 000 350 - 400 10 000 24/04/2022 10 000 350 - 10 400 - TOTAL - 700 10 000 10 700 Source : MINFI/DIRTRE
   Table 15: Amortization of a 5-year maturity bond (in millions of FCFA)
   OTA -3 years. If interest rate tendered = 4.00% Due dates Outstanding at the start of the period Interests Amortization Annuities Outstanding at the end of the period 17/04/2020 10 000 - - - 10 000 17/04/2021 10 000 400 0 400 10 000 17/04/2022 10 000 400 0 400 10 000 17/04/2023 10 000 400 0 10 400 - TOTAL 1 200 10 000 11 200 Source : MINFI/DIRTRE

Information Note |29
Table 16: Amortization of a 5-year maturity bond (in millions of FCFA)
OTA -5years. If interest rate tendered = 5.70% Due dates Outstanding at the start of the period Interests Amortization Annuities Outstanding at the end of the period 10/04/2020 10 000 570 - - 10 000 10/04/2021 10 000 570 - 570 10 000 10/04/2022 10 000 570 - 570 10 000 10/04/2023 10 000 570 - 570 10 000 10/04/2024 10 000 570 - 570 10 000 10/04/225 10 000 570 10 000 10 570 - TOTAL 2 850 10 000 12 850
4. SECURITIES REDEMPTION GUARANTEES
The repayment of matured securities and the payment of accrued interest are initiated by the CRCT, in the name and on behalf of the Public Treasury.  For each issue, the CRCT establishes a repayment schedule and an interest payment
schedule for OTAs.
 Fifteen (15) days before the date of payment of interest or redemption of the securities, the CRCT will send the Treasury a notice of due date, reminding it of the characteristics of the securities concerned and the amounts required for settlement.  On the due date, the Treasury is required to make full payment of the sums due, no partial payment being authorised.  The Minister of Finance authorises BEAC to automatically debit the Treasury's Single Account in its books as soon as a due date falls. An ad hoc Agreement signed between the parties formalizes this authorization. The Issuing authority is the State of Cameroon represented by the Minister of Finance. The Directorate General of the Treasury, Financial and Monetary Cooperation (DGTCFM) is the administrative entity responsible for managing the issuance of these OTAs and monitoring their financial service on behalf of the State.

30| Information Note
Figure 1: Organization Chart of the Issuing Authority
Source : MINFI/DIRTRE

Information Note |31
VIII. ASSESSMENT OF THE STATE'S INTERVENTION ON THE CAPITAL
MARKETS
Since 2010, Cameroon has raised CFAF 3 112. 751 billion through its various interventions on the Capital Market broken down as follows:

• On the BEAC Money Market: CFAF 1867.401 billion, of which CFAF 1 593. 685
  billion in BTA and CFAF 273.716 billion in OTA;
• On the National Financial Market: CFAF 795 billion was raised by Bond Loan;
• On the International Financial Market: USD 750 million equivalents to CFAF 450.35
  billion was raised through a Eurobond issue.
  These amounts raised have made it possible to carry out a number of major infrastructure projects in various sectors of activity as shown in the graph below:
  Graph 5: Distribution per sector
  Source : MINFI/DIRTRE

SOME INVESTMENT PROJECTS