Simultaneous Issuance (SI)

The simultaneous issuance of Government securities by auction is an issuance method which consists in offering in the same day, several public securities of distinct characteristics (bills and/or bonds) relating to a global amount on behalf of the same issuer.

Bidding rules on a simultaneous issue are identical to those of a classic issuance.

Characteristics of Simultaneous Issuance:

• A simultaneous issuance is a combination of several securities:
• either Fungible Treasury Bills (T-Bills);
• either Fungible Treasury Bonds (T-Bonds);
• or a combination of T-Bills and T-Bonds.
• Each security is independent of the other and with its distinct characteristics.
• All securities offered through Simultaneous Issuance contribute to raising a single and same amount (common amount put out to tender).
• Simultaneous issues are announced through a single notice of tender for a global amount put out to tender.

Who can benefit?

• Any natural or legal person residing in the Union
• Foreign non-residents through Primary Dealers or banks resident in the Union.

Issuance technique:

• Simultaneous issuance of securities is organized by auction at multiple price/rates (price/rate requested) depending on the nature of the securities.
• As many bids as securities offered simultaneously are created (each security corresponding to an auction).
• Simultaneous Issuance is governed by the same rules of sorting as traditional auctions. For each security, the selected volume, the rate or the marginal price, the absorption rate as well as the weighted rate, or the average price are identified.
• The following results indicators are measured globally and not by securities:
• coverage rate of the operation = ∑ bids received on all the securities

Overall amount put out to tender

• and the absorption rate = ∑ bids retained on all the securities

  Bids received on all the securities

Subscription terms

• Submission is a multiple of 10,000 FCFA for T-Bonds and 1 000 000 FCFA for T-Bills.

• Direct investors (credit institutions, brokerage firms, regional financial institutions and Primary Dealers) bid on their own account or for their customers.
• Primary Dealers submit Non Competitive Bids that they distribute at their convenience on the various securities offered by Simultaneous Issuance.

• Indirect investors (natural or legal persons who cannot directly buy securities) can go through the Primary Dealers or direct investors to buy securities.
• An investor cannot bid (in own and customer account) for more than 60% of the total amount announced by Simultaneous Issuance.