BANK OF CENTRAL AFRICAN STATES (BEAC)

CENTRAL SERVICES

Settlement and Custody Cell for Securities

THE GOVERNOR,

Having regard to Regulation No. 03/19/CEMAC/CM on Treasury securities issued by the Member States of CEMAC; Having regard to the General Regulation of the Settlement and Custody Cell for Securities (CRCT); Having regard to the Adhesion Agreement to the Settlement and Custody Cell for Securities (CRCT); 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 (SVT);

Following approval by the Surveillance Council during its ordinary session on 30 September 2021, via videoconference; In application of Article 34, paragraph 1, of the aforementioned Regulation No. 03/19;

HAS ADOPTED THE INSTRUCTION BELOW

Article 1. ROLE OF THE BEAC
As agent for the Public Treasuries of CEMAC, the BEAC is responsible for the operational organization of Treasury securities buyback sessions.

Article 2. ANNOUNCEMENT OF TREASURY SECURITIES BUYBACK OPERATIONS Treasury securities buyback operations are announced in the annual issuance calendar, updated quarterly by the Public Treasury. The issuance calendar is published on the BEAC website and disseminated through any other communication means.

Article 3. REQUEST TO THE BEAC
At least seven working days before the date scheduled in the calendar, the Public Treasury requests the BEAC to organize the buyback operation. The request is accompanied by a call for bids notice, which includes the following information (cf. model of call for bids notice in the annex):

• The date of the operation;
• The value (settlement) date;
• The maximum nominal amount of Treasury securities to be bought back;
• The characteristics of the Treasury securities to be bought back:
  . The name of each Treasury security: treasury bill assimilated (BTA) or treasury bond assimilated (OTA); . The security code for each Treasury security to be bought back; . The maturity date of each Treasury security; . The interest rate for OTAs; . The nominal amount of each Treasury security in circulation.

In case of impossibility to organize the operation on the date indicated in the calendar, the Public Treasury must inform the BEAC at least 72 hours before the scheduled date, to consult on a possible postponement of the issuance to a later date and to inform Treasury Securities Specialists (SVT).

Article 4. INITIATION AND CREATION OF THE AUCTION The BEAC verifies the characteristics of the Treasury securities buyback offer and creates the auction on the first working day following receipt of the request in the dedicated platform.

Article 5. PUBLICATION OF THE CALL FOR BIDS NOTICE At least five working days before the operation date, the call for bids notice is published on the BEAC website and may be disseminated through any other communication means.

Article 6. CONDITIONS FOR PARTICIPATION IN TREASURY SECURITIES BUYBACK OPERATIONS Only the SVT of the concerned Public Treasury are authorized to submit bids.
A non-SVT investor and SVT who are not members of the network of the concerned Public Treasury may also sell their Treasury securities to the Public Treasury if their bids are included in the offers submitted by the SVT members of the concerned Public Treasury network.

Article 7. SUBMISSION OF BIDS
Each buyback bid is submitted in terms of a price calculated to two decimal places and expressed on a basis of 100, taking into account accrued interest where applicable. For each buyback bid, the SVT indicates the nominal amount of the Treasury security to be sold and the requested price. An SVT may submit up to ten bids with different prices for each Treasury security indicated in the call for bids notice.

Article 8. SUBMISSION OF BIDS
SVT send their bids via the dedicated platform no later than the day and time indicated in the call for bids notice. If bids cannot be submitted by SVT via the dedicated platform due to a technical failure, they may, provided prior permission from the BEAC is obtained, be sent by a communication means indicated by the BEAC.

Article 9. TREATMENT OF BIDS
Upon closure of the operation in the dedicated platform, the BEAC consolidates the bids and establishes, for each Treasury security, an anonymous table showing the cumulative amounts offered in ascending order of price. No later than one hour after the closure of the operation in the dedicated platform, the BEAC sends the anonymous table to the Public Treasury. Within a maximum period of two hours, the Public Treasury communicates its decision to the BEAC regarding the limit price for each Treasury security. The Public Treasury reserves the right to accept or reject, in whole or in part, any bid or all bids. It also reserves the right to accept an amount lower than the maximum amount indicated in the call for bids notice.

Article 10. DETERMINATION OF OPERATION RESULTS The BEAC then proceeds to the allocation of bids, first accepting SVT bids with the lowest prices within the limit price accepted by the Public Treasury. For submissions expressed at identical prices, the marginal tranche is allocated among SVT pro rata to the amount of submissions.

Article 11. COMMUNICATION OF RESULTS
The Public Treasury publishes, no later than the day following receipt of bids, the results of the Treasury securities buyback operation (cf. model of results announcement in the annex). Each bidder is also informed on the same day of the outcome reserved for their submissions.

Article 12. SETTLEMENT OF ACCEPTED BIDS AND DELIVERY OF TREASURY SECURITIES Treasury securities sale bids by SVT are firm and irrevocable.
Settlement of accepted bids by the Public Treasury will take place in the dedicated platform.
Delivery of Treasury securities by the SVT is effected against payment by the concerned Public Treasury of the amount due for the buyback of Treasury securities. Accepted bids are settled in a single payment by debiting the settlement account of the Public Treasury and crediting the settlement account of the SVT at the BEAC. SVT take all necessary measures to deliver all accepted Treasury securities they have submitted and will be held responsible for any loss suffered due to failure to deliver. SVT must also ensure that the Treasury securities they deliver are free of any encumbrances. In case of failure to deliver Treasury securities by the SVT on the settlement date, the buyback amount for undelivered Treasury securities is subject to penalties, with a rate fixed per day of delay at the prevailing penalty rate, without prejudice to other sanctions provided by current regulations. The amount corresponding to these penalties is paid into the settlement account of the Public Treasury at the BEAC. To this end, the SVT authorizes the BEAC to automatically debit its settlement account for the payment of penalties.

Article 13. ENTRY INTO FORCE
This Instruction enters into force on the date of its signature.

Done in Yaoundé, on 30 September 2021
The Governor
ABBA S. TOLLI