WAEMU: BOAD successfully completes securitization operation, raises $246M

Finance
Monday, 08 May 2023 15:43
WAEMU: BOAD successfully completes securitization operation, raises $246M

(Togo First) - The West African Development Bank (BOAD) completed its recently-launched securitization operation. In a statement issued on May 2, the sub-regional lender announced that it raised, via the operation, a "historic" amount of CFA150 billion ($246 million) on the Uemoa financial market.

Carried out by BOAD Titrisation, the operation will help the Bank optimize its balance sheet, hence raising its capacity for financing its Member States. Specifically, the proceeds mostly finance the BOAD’s 2021-2025 "Djoliba" strategy.

The funds will be invested in projects that will bolster employment, water and rice production, road construction, States’ GDPs, and energy production, as well as help reduce CO2 emissions.

"The success of this operation is first and foremost that of the teams to whom I extend my warmest congratulations. They have been working hard for several months to structure it and get it approved by the WAMU Financial Markets Authority. It is then a new step in the dynamic that we are calling for, which is to find innovative financing mechanisms for the development projects of our member States. This operation, by restoring our balance sheet capacity, is in line with our expectations," said Serge Ekué, President of the BOAD, at the closing of this operation.

The funds collected will enable the Bank to stand by its commitment to be "the Bank of reference for a sustainable impact on the integration and transformation of West Africa".

To conduct the securitization, the BOAD was assisted by a consortium composed of NSIA Finance - SGI Togo - IMPAXIS Securities as co-lead managers of the placement syndicate. Bonds issued will mature over 7 years (84 months) at an annual rate of 6.10%. The operation was first announced in March. 

Esaïe Edoh

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