Development Bank Raises CFA130 Billion in Bond Sale
The Development Bank of Central African States secured the capital to accelerate its stagnant loan disbursement pipeline.
Updated on Oct. 15, 2026 in Corporate Finance
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The Development Bank of Central African States (BDEAC) raised CFA130.2 billion, or approximately $222 million, through an international bond issue on October 13, 2026. The bank intends to use these proceeds to address a significant backlog of confirmed but undisbursed loan commitments across its member region.
Why it matters
This capital injection aims to improve the bank's project execution, which saw only 5% of its annual disbursement target met in 2025. By addressing the high volume of pending commitments, the bank hopes to revitalize infrastructure and industrial development in Central Africa.
The new bond carries an annual coupon of 7.88% and matures in October 2029. This issuance follows a 2025 period where the bank held CFA128.3 billion in cash and cash equivalents while managing a 5% loan disbursement execution rate.
The players
Development Bank of Central African States
BDEAC is the regional financial institution that provides financing for economic development projects across Central African nations.
Cameroon
Cameroon is a member state of the Development Bank of Central African States and represents a significant portion of its loan portfolio.
The details
To execute the transaction, the bank utilized a reference exchange rate of CFA586.30 per dollar and implemented a currency hedge between the euro and the U.S. dollar. The funds are earmarked for projects in infrastructure, agriculture, agribusiness, and industrial sectors.
Timeline
2024: The bank reported CFA543.1 billion in undisbursed loan commitments.
2025: The bank disbursed CFA18.65 billion to eight projects.
January 2026: Cameroon received a disbursement of CFA14.5 billion.
June 30, 2026: Cameroon held CFA151.7 billion in undisbursed loan commitments.
October 13, 2026: BDEAC completed the international bond issue.
Market Dynamics
This bond issuance reflects a broader shift toward tapping international markets to bridge the gap between loan commitments and actual project funding. The move marks a departure from reliance on existing cash reserves, which stood at CFA128.3 billion at the end of 2025.
Institutional investors holding the new bond will receive a 7.88% annual coupon payment through its 2029 maturity. The bank's use of currency hedging aims to protect the bond's value against fluctuations between the euro and the U.S. dollar.
The takeaway
This bond issue highlights the necessity for development banks to actively manage liquidity to fulfill long-standing project promises. Investors should monitor the bank's future investor conferences to track whether increased funding effectively translates into higher loan disbursement rates.
What happens next
The Development Bank of Central African States plans to conduct investor conferences every six months to provide updates on its financial health and project progress.
Further reading
For more on capital raising strategies, see Corporate Finance.
Source note: This article includes information reported by Business in Cameroon.
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