COFINA, Africa’s leading institution for mesofinance, raised more than 16 billion CFA francs, an oversubscription of 60%, which reflects strong investor interest. The money raised will be reinvested in the financing of small and medium-sized businesses in the region.
Initiated on April 11, 2018, the securitization of Compagnie Financière Africaine (COFINA), Africa’s leading institution for mesofinance, was closed on the Regional Stock Exchange, the Common Stock Exchange of the eight countries of the Union zone. Economic and Monetary Union of West Africa (UEMOA). This operation, the first for the region, involved a bond issue for an amount of 10 billion CFA francs.
This securitization of receivables raised 16 billion CFA francs, an oversubscription of 60%, reflecting strong investor interest. Registered funds come from countries around the world. Burkina Faso, Mali, Côte d’Ivoire, Togo, Gabon and Morocco, but also Germany, the United States, the United Kingdom and Switzerland, are among the main countries of residence of subscribers .
The transaction was arranged by Africa Link Capital Structuring. It was brought and closed by two management and intermediation companies, leaders in the Ivorian market: Hudson & Cie and NSIA Finance. With a maturity of 18 months, the titles (1 million in total) were issued at a price of 10,000 CFA francs, with a face rate of 7.50% gross per year.
“The success of this operation is proof that investors see in COFINA and the mesofinance sector a potential that is still under-exploited. Legal entities, made up mostly of insurance companies, represent 84% of subscribers, an indisputable sign that we have the confidence of our peers and our partners. The money collected will be reinvested in the real economy to support small and medium-sized businesses to organize themselves in our countries in the sub-region “, says Jean-Luc Konan, CEO of COFINA.
About COFINA Group
Founded in 2013, the COFINA Group is the first African financial institution dedicated to mesofinance, the “missing link” between microfinance and traditional banking, which offers the opportunity for African SMEs (90% of private companies on the continent) to access more easily to credit. Present in six French-speaking African countries (Congo-Brazzaville, Ivory Coast, Gabon, Guinea Conakry, Mali, Senegal), COFINA has already financed more than 40,000 projects, of which 52% are run by women entrepreneurs. In recent years, COFINA has established itself as the benchmark for financing small and medium-sized businesses in French-speaking Africa. COFINA has set itself the challenge of reducing the financial divide suffered by a large part of the new African middle class.
With more than 1,000 employees, COFINA manages a portfolio of more than 108,000 clients spread over its six subsidiaries. The institution has a balance sheet total of 96 billion CFA francs.