Congo: SNPC raises FCFA 100 billion from Gabonese investors.

Société nationale des pétroles du Congo (SNPC) has officially launched a bond issue through a public offering on the CEMAC financial market. Called "SNPC 6.5% Net 2024-2029", the bond has been approved by the Central African Financial Market Supervisory Commission (Cosumaf) and is designed to boost SNPC's drilling activities.

Presented in Libreville on Tuesday 11 February, this transaction is aimed primarily at institutional investors and companies with cash surpluses. The main objective is to finance the development of new onshore licences - Nanga I, Mayombe II and Kouakouala - granted by the Congolese government. According to Maixent Raoul Ominga, Managing Director of SNPC, this first tranche of 100 billion CFA francs is part of an overall "Performance 2025" programme, which aims to raise 300 billion CFA francs through successive bond issues.

The issue involves 10 million bonds with a nominal value of 10,000 CFA francs each, with a minimum subscription of 150 bonds. One of the co-arrangers of the operation stressed that this initiative is proof of the region's ability to raise funds for its local businesses, and could encourage other companies to use the regional financial market for their development.

One of the main advantages for subscribers is the exemption of interest income from capital gains tax in all CEMAC member countries. Interest will be paid annually from the first anniversary date of the issue.

The capital will be repaid on a straight-line basis, at the rate of one fifth of the amount subscribed each year. In addition, SNPC reserves the right to buy back its shares from the third year onwards on the secondary market, with no impact on the initial amortisation schedule. This flexibility provides investors with a stable and predictable return, while allowing SNPC to adjust its financing in line with its changing needs.

With this operation, SNPC is seeking not only to finance its expansion, but also to strengthen investor confidence in the CEMAC financial market. The subscription period, which opened on 23 December 2024, will close on 27 February 2025, unless the total amount is raised early or extended. This project marks an important stage in the consolidation of the Congolese oil sector and its influence on regional financial markets.