A bond according to the OHADA Law is an instrument of indebtedness offered by companies to secure the repayment of money borrowed by them. Bond shall be negotiable instruments which for one and the same issue, shall confer the same rights to a claim for the same face value.
A single bond shall be a contract under seal to pay a sum of money or a sealed written acknowledgement of a debt, present or future. A double or conditional bond is where a condition is added that if the obligator does not or forebears from doing some act the obligation shall be void.
The issue of bonds shall only be allowed for public limited companies and economic interest groups made up of public limited companies which have existed for two years and have drawn up two balance sheets duly approved by the shareholders.
The issue of bonds shall be forbidden for companies with capital not fully paid up. The issue of lottery bonds shall also be forbidden.
Any bonds redeemed by the issuing company and bought back shall be cancelled and may not be re-floated.