African DFIs push ahead with joint securitisation project: IFR
The African Development Bank and the Development Bank of Southern Africa published on Monday a request for consultants to help them with a proposed first-of-its-kind multi-originator synthetic securitisation programme first announced in December.
By transferring credit risk associated with the development banks' loan portfolios to third-party private-sector investors, the programme is intended to unlock lending capacity for new development projects. The project builds on AfDB's "Room2Run" synthetic securitisation, which closed in 2018.
The development banks first unveiled the project in December at the Africa Investment Forum 2024 Market Days in Rabat, Morocco, where they signed a letter of intent with investors Academy Securities, Africa50 and Newmarket.
"The proposed multi-issuer securitisation vehicle we are shaping – just like with [special drawing rights] rechanneling through hybrid capital and other innovations we continue to explore – exemplifies how collaboration between multilateral development banks and private sector investors can unlock transformative capital flows to address Africa's financing gaps," said Akinwumi Adesina, president of the African Development Bank, in a press release at the time.
At first, AfDB and DBSA intend to securitise a combined reference portfolio of roughly US$2bn of their loans, according to a request for proposal published on Monday. By pooling loans originated by multiple development finance institutions, they say they will be able to create larger-scale pools of diversified assets to appeal to institutional investors.
According to the RFP, the development banks are looking for advice on how best to structure the multi-originator transaction, which is expected to feature a special purpose vehicle that would consolidate cashflows from the reference portfolios and issue collateralised loan obligations to institutional investors.
The banks are looking at a revolving structure that would allow the portfolio to be replenished with new assets over time, rather than a static transaction.
Consultants looking to bid for the advisory role have until May 23 to send proposals to the two development banks.
Growing momentum
The project is part of a broader push by multilateral lenders to mobilise private capital to boost their lending firepower. AfDB has been a trailblazer in this area, kick-starting development bank securitisation when it sold the mezzanine risk associated with a US$1bn portfolio of 47 loans to private-sector borrowers with its Room2Run transaction.
Since then, the Asian Development Bank, the World Bank, the West African Development Bank (known as BOAD) and IDB Invest have also carried portfolio risk transfers, sometimes with donor governments and sometimes with insurers, but increasingly also in the form of securitisations.
In 2023, BOAD carried out a CFA Fr150bn (US$250m) securitisation called BOAD DOLI-P, underwritten by NSIA Finance, SGI Togo and Impaxis Securities, and the following year IDB Invest completed its "Scaling4Impact" transaction, transferring US$100m of mezzanine risk on a US$1bn portfolio to Newmarket Capital and insurers AXA XL and Axis.
Also last year, the World Bank's private sector lending arm, the International Finance Corp, revealed more details of its Warehouse-Enabled Securitization Platform. The up to US$2bn platform (US$1bn from IFC) will co-finance Paris Agreement-aligned emerging market loans by MDBs and hold them until packaged into securities, according to a tender document last year seeking a financial adviser to WESP. BlackRock's independent financial markets advisory business won the tender.
Recasts, adds reference to December announcement, investors and structural features.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
5 hours ago
- Zawya
Egypt assumes vice presidency of the International Gas Union, paving the way for 2028 presidency
Mohamed Fouad: The Egyptian Gas & Energy Association has launched an advisory council comprising senior leaders from both public and private sectors and international partners. Karim Shaaban: We aim to enhance internal integration among the IGU's committees to ensure its initiatives align with member states' priorities. Cairo — For the first time ever, Egypt has officially assumed the position of Vice President of the International Gas Union (IGU) through the Egyptian Gas & Energy Association. This step paves the way for Egypt's upcoming presidency of the next triennium (2028-2031). This role reflects increasing international confidence in Egypt's capabilities to effectively contribute to shaping the future of global energy, marking it as the first country from Africa and the Middle East to hold this prestigious position. Eng. Khaled AbuBakr, Chairman of the Egyptian Gas & Energy Association (EGEA), has taken up the role of IGU Vice President. In this capacity, he participates in all meetings and activities of the IGU and the Executive Committee. He also represents the IGU in the ongoing gas debates, such as the G7, G20, and UN Climate Change Conferences, in addition to the major international conferences, to advance its strategic vision and enhance its global influence. Eng. Mohamed Fouad, Secretary General of EGEA, serves as the Egyptian Presidency Team Director for the IGU, in addition to his role as Chair of the National Organization Committee for the 2031 World Gas Conference (WGC), which is to be held in Egypt. Meanwhile, Eng. Karim Shaaban, Head of the Strategy and Planning Committee of EGEA, holds the position of Vice Chair of the Coordination Committee and a member of the Executive Committee of the IGU. His responsibilities include overseeing the work of the IGU's committees and contributing to the preparation and submission of the Triennial Work Programme (TWP) to the Executive Committee. In this context, Eng. Khaled AbuBakr, Vice President of the IGU and Chairman of EGEA, stated: 'From Egypt and Africa, we embark to power the whole world with secure and clean energy. This leadership role represents a significant step through which we intend to enhance energy security by developing gas policies and infrastructure, improving the Gas industry's resilience to price volatility, providing necessary investments, and accelerating the transition towards more sustainable energy sources. We are fully committed to coordinating with the Italian Presidency of the IGU to ensure the Union's objectives are achieved during this phase.' Abubakr added: 'Through this position, we aim to transform the Egyptian experience into an international model to be emulated. This role enables Egypt to strengthen international cooperation and attract investment, supporting its pursuit of sustainable development and solidifying its role as a regional energy hub. We deeply appreciate the Egyptian government's support in securing this nomination.' Eng. Mohamed Fouad, Secretary General of the Egyptian Gas & Energy Association (EGEA), also outlined the Association's expanded strategy, which extends beyond natural gas to include low-carbon technologies and renewable energy. This expansion stems from the EGEA's strong belief in the importance of a balanced and inclusive energy transition. Fouad added, "The Association has launched its new Advisory Board, comprising a distinguished group of senior leaders from both the public and private sectors, as well as international partners operating in Egypt's energy and gas sector. The private sector will provide deep insights into market trends and investment opportunities, while the public sector will ensure initiatives align with regulatory policies." For his part, Eng. Karim Shaaban, Vice Chair of the Coordination Committee and member of the Executive Committee of the IGU, and Head of the Strategy and Planning Committee of EGEA, stated: "Through this committee, we aim to enhance internal integration among the IGU's committees and working groups, ensuring its initiatives align with member states' priorities. We also contribute to preparing the program for the 2028 World Gas Conference and collaborate with the leadership of the R&D and Innovation Committee to formulate sessions for the International Gas Research Conference (IGRC). These efforts contribute to elevating the Union's standing in the global gas industry." As a result of winning the presidency of the International Gas Union (IGU) for the 2028-2031 term, Egypt is set to host the 31st edition of the World Gas Conference (WGC) in 2031, marking the IGU's centenary anniversary. This event stands as the global gas and energy industry's most significant gathering, convening top experts and decision-makers to delve into the sector's primary challenges and opportunities. Hosting the WGC will underscore Egypt's leadership in energy transition and technological innovation, along with its initiatives to establish a regional green energy hub, ultimately bolstering its standing as a prime destination for investment and tourism.
Zawya
10 hours ago
- Zawya
CI Capital successfully concludes EGP 665.5mln securitized bond issuance for Aman Consumer Finance
Cairo: CI Capital ( the leading diversified financial services group, announced today the successful conclusion of the third securitized bond issuance on behalf of Aman Securitization, with the originator being Aman Consumer Finance. The issuance comes in 3 tranches: the first valued at EGP 307 Mn, with a tenor of 6 months, The second tranche, valued at EGP 222 Mn, with a tenor of 12 months. Both tranches received a Prime 1 rating from Middle East Ratings and Investor Services (MERIS). The third tranche, valued at EGP 136.5 Mn, with a tenor of 23 months, received a rating of A-. "This issuance, marking the Seventh issuance concluded by CI Capital for Aman Holding, a portfolio company of Raya Holding, reflects CI Capital's series of successes by executing numerous key transactions, further reinforcing our leading position as Egypt's leading advisory house. This issuance also affirms our ability to provide our clients with diverse and innovative investment solutions,' Commented Amr Helal, Chief Executive Officer (Sell-Side) of the Investment Bank at CI Capital. 'CI Capital has effectively concluded seven securitized bond issuances for Aman since 2023, strongly indicating the solid partnership between the two companies. He expressed his aspiration to enhance strategic cooperation between the two companies further, considering Aman one of CI Capital's most significant partners,' Added Helal. In the same context, Eng. Hazem Moghazi, Co-CEO of Business and Commercial Affairs at AMAN Holding, added: 'The success of this issuance reflects the strong confidence that investors place in AMAN Holding and in the Egyptian market overall. Since the launch of our securitization program, we have successfully completed issuances totaling nearly EGP 9.7 billion to date, which stands as a testament to our commitment to sustainable growth and to contributing to the development of Egypt's non-banking financial sector. We are proud to collaborate with all stakeholders involved in AMAN Securitization's various issuances, and we remain committed throughout 2025 to implementing our strategy of diversifying funding sources and enhancing financial transparency—supporting market stability and aligning with the aspirations of the national economy.' Mohamed Abbas, Head of DCM at CI Capital, expressed his pleasure for the successful conclusion of the issuance in partnership with Aman, noting that Aman is one of CI Capital's key success partners. He also emphasized his pride in the enduring relationships with Aman, having executed issuances with innovative structures and solutions. Finally, Abbas highlighted the substantial investor interest in the issuance, reflecting strong market confidence in both CI Capital and Aman's portfolio performance. CI Capital acted as financial adviser, issuance manager, and arranger in the issuance, while Zaki Hashem & Partners acted as the legal advisor, and United for Auditing, Tax, Advisory & Financial Services (UHY) acted as the issuance's financial auditor. About CI Capital Holding for Financial Investments CI Capital Holding for Financial Investments (Ticker: CICH EY, is a diversified financial services group and Egypt's leading provider of leasing, microfinance, mortgage finance, consumer finance, and investment banking products and services. Through its headquarters in Cairo, and presence in New York and Dubai, CI Capital Holding for Financial Investments offers a wide range of financial solutions, to a diversified client base that includes global and regional institutions and family offices, large corporates, SMEs, and high-net-worth and individual investors. CI Capital Holding for Financial Investments leverages its full-fledged investment banking platform to provide market-leading capital raising and M&A advisory, asset management, securities brokerage, custody, and research. Through its subsidiary, Corplease, CI Capital offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. Additionally, CI Capital Holding for Financial Investments offers microfinance lending through Egypt's first licensed MFI, Reefy. The Group has over 4,000 employees, led by a team of professionals who are among the most experienced in the industry, with complementary backgrounds and skill sets, and a deep understanding of local market dynamics. Banque Misr, one of Egypt and Africa's most renowned financial banks, is the majority shareholder of CI Capital Holding. For more information, please contact CI's Investor Relations Department Email:
Zawya
2 days ago
- Zawya
Cassa Depositi e Prestiti and SACE provide EUR250 Million to Africa Finance Corporation
Africa Finance Corporation (AFC) ( the continent's leading infrastructure solutions provider, has secured a landmark EUR 250 million 10-year term loan facility from Cassa Depositi e Prestiti (CDP) the Italian Financial Institution for Development Cooperation. The transaction is backed by a guarantee from SACE, the Italian insurance and financial group fully owned by the Italian Ministry of Economy and Finance, covering up to 80% of the facility amount. The financing builds on engagement at the Mattei Plan-Global Gateway summit, attended by Italian Prime Minister Giorgia Meloni, European Commission President Ursula Von der Leyen, CDP, SACE and AFC, where the parties confirmed their intent to collaborate. The facility is structured to cultivate Italian supply chain opportunities in infrastructure and renewable energy generation, including the supply of components for the Lobito Railway Corridor - a commercial railway line that will run through Angola and extend to the borders of Zambia and the Democratic Republic of Congo. This long-term facility deepens AFC's strategic partnership with both CDP and SACE, while reinforcing its mandate to mobilise high-quality, long-tenor capital in support of delivering sustainable infrastructure across Africa. "Cassa Depositi e Prestiti confirms its role as a strategic partner in supporting infrastructure projects with a high social and economic impact in Africa. With this financing - said Dario Scannapieco, Chief Executive Officer of CDP - we are strengthening business and technological relations between Italy and Africa, enhancing talent and innovation. We are convinced that investing in strategic projects not only creates new opportunities for our companies but also helps to build lasting and shared ties capable of fostering growth and well-being for local communities." 'We are proud to contribute to the involvement of Italian companies in the transport and logistics sector to realise a significant strategic project like the Lobito Railway Corridor within the Mattei Plan,' said Alessandra Ricci, CEO of SACE. 'This collaboration reaffirms SACE's commitment to promoting new connections for Italian companies seeking to diversify their exports and embrace new growth opportunities.' ' Our partnership with CDP, further strengthened by SACE's guarantee, exemplifies the power of blended finance in unlocking capital for infrastructure development in Africa,' said Banji Fehintola, Executive Board Member and Head, Financial Services, AFC. ' The Lobito Corridor is a transformational project that will open new trade routes for resources, support regional industrialisation, accelerate job creation and strengthen Africa's position in global value chains, while delivering long-term, inclusive growth. ' Distributed by APO Group on behalf of Africa Finance Corporation (AFC). SACE Media gallery: Media Enquiries: Communications Africa Finance Corporation Email: communications@ SACE Press Office ufficiostampa@ CDP Media Relations Tel: +39 06 42213990 Website: Follow CDP on: LinkedIn: X: Facebook: Instagram: YouTube: About Lobito Corridor Rail Project: The railway line will be approximately 830 km long and will connect Chingola in Zambia to Luacano in Angola with the aim of facilitating the transportation of agricultural products, minerals and consumer goods. The greatest opportunities for the Italian supply chain in the region lie in sectors such as energy, renewables, transportation and logistics. About CDP: Cassa Depositi e Prestiti is the National Promotional Institute which has been supporting the Italian economy since 1850. The main goal of CDP is to accelerate the industrial and infrastructural development of Italy to boost its economic and social growth. CDP focuses its activities on sustainable development at local level, supporting the innovation and growth of Italian enterprises, also in the international arena. It partners local authorities, in a financing and advisory capacity, to create infrastructures and improve services of public value. CDP also participates actively in international cooperation initiatives to realize projects in developing countries and emerging markets. Cassa Depositi e Prestiti is entirely financed by private capital, through the issuing of Postal Savings Bonds and Postal Savings Passbooks, and through issues on national and international financial markets. About SACE: SACE is the insurance and financial group controlled by the Ministry of Economy and Finance, specialising in supporting the growth of Italian companies through a wide range of solutions to facilitate export and innovation, including financial guarantees, factoring, risk management and protection, advisory services and business matching. With a network of 11 offices in Italy and 13 worldwide in target countries for Made in Italy products, SACE serves over 60,000 companies, supporting their growth in Italy and globally, with a portfolio of insured operations and guaranteed investments totalling EU 267 billion across approximately 200 foreign markets. About AFC: AFC was established in 2007 to be the catalyst for pragmatic infrastructure and industrial investments across Africa. AFC's approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address Africa's infrastructure development needs and drive sustainable economic growth. Eighteen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in core infrastructure sectors. AFC has 45 member countries and has invested over US$15 billion since its inception.
