Despite geopolitical strains and economic headwinds, Mali raised $73 million in the regional debt market, beating its $70 million target amid strong investor demand.
The Malian treasury said it achieved a 103.13% coverage rate in its latest operation on the WAEMU public securities market, a signal of resilient appetite for government paper despite continued political uncertainty and security risks.
Authorities issued three instruments simultaneously: a 364-day Treasury Bill (BAT) and Treasury Bonds (OATs) of three and five years. At settlement, the treasury retained $72.46 million, saying the selective retention reflected efforts to manage borrowing costs while securing the bulk of its funding needs.
The one-year Treasury Bill raised $25 million at a marginal rate of 7.15% and a weighted average yield of 7.64%. The three-year bond attracted $24.44 million at an average yield of 9.32%, while the five-year bond secured $23.2 million at 7.79%.
Treasury officials said the multi-instrument structure was designed to diversify funding sources, attract a range of investor profiles, and better balance the domestic debt curve.
“This has been Mali’s best operation in the regional debt market so far this year. Over the past few years, the country has been enduring bad press due to our political situation, but investors kept faith with the treasury,” said Moussa Sidibé, head of the research unit at the University of Social Sciences and Management of Bamako.
Local capital steps forward
A standout feature of the sale was the dominance of domestic participation. Malian investors contributed $43 million – 58.64% of total funds raised – marking the first time locals have taken such a commanding position in treasury financing.
“All three categories of bonds sold out like hot cakes. And something interesting with this operation is that all categories had almost an equal yield, unlike the usual trend on the market where you have investors mostly opting for short-term bonds,” Sidibé told Allen Dreyfus.
The shift, he added, reflects deepening confidence in sovereign instruments at home.
“Mali boasts rich businesspeople, who work in diverse sectors, but securities have never been their centre of interest. Now things are changing, and it’s good news for the country. We can now depend on ourselves to some extent in fundraising,” he said.
The treasury said the successful operation underscored investor confidence in Bamako’s ability to meet its obligations, even as the country remains under regional and diplomatic pressure following years of political upheaval.
Looking ahead, Mali plans to raise $2.216 billion on WAEMU markets in 2025, signalling heavier reliance on regional funding as access to global capital remains constrained.
Mining remains central to Mali’s fiscal outlook. Gold accounts for 25% of the national budget, 75% of export earnings, and 10% of GDP, according to the Ministry of Mines. Authorities are targeting an increase in mining’s share of GDP to 20% to strengthen revenue buffers amid external volatility.
