The pan-African banking group, Oragroup, on Wednesday, announced it has obtained the guarantee from the African Guarantee Fund (AGF West Africa) for a forthcoming issue of commercial paper amounting to 35 billion CFA francs. The commercial paper will be launched on the WAEMU regional market after getting approval from the Central Bank of West African States (BCEAO).
The commercial paper will come with a maturity of 2 years and a remuneration of 6.1 percent per annum. The issue will be co-arranged by the Management and Intermediation Companies, CGF Bourse and SGI Togo. It will be 100% covered by AGF West Africa. The agreement between Oragroup and AGF West Africa was signed on Wednesday in Lomé (Togo).
“This guarantee by AGF West Africa reflects a strong brand of confidence in Oragroup, its financial performance, its development model and its growth strategy which materialized recently with our initial public offering last April for a 20% stake that is a raise in the regional financial market of 56.92 billion CFA francs (86 million euros) and the largest transaction ever carried out at the BRVM, “said Ferdinand Ngon Kemoum, the Chief Executive Officer of Oragroup.
Last year, Oragroup posted a balance sheet total of CFAF 2 171 billion (€ 3.3 billion), up 21 percent compared to the previous year. Customer deposits for the entire Orabank network amounted to 1,462 billion CFA francs, up 24 percent, and lending operations to 1,255 billion CFA francs, an increase of 16 percent.
In total, the banking group posted a net banking income of 126.77 billion CFA francs (193 million euros, + 17%) and consolidated net income up sharply by 36% to 29.77 billion CFA francs (45 million euros).
In May 2018, Oragroup obtained long-term A and short-term A investment ratings from Bloomfield. In 2016 and 2017, Oragroup had already successfully completed a two-tranche commercial paper issue of 35 billion CFA francs per public offering on the regional financial market of the Western Economic and Monetary Union. -African (UEMOA).
