Latest news with #ATIDI
Zawya
07-04-2025
- Business
- Zawya
ATIDI helps strengthen Benin's fiscal resilience with second-loss guarantee for Deutsche Bank's €507.5mln loan
The Republic of Benin, acting through its Ministry of Economy and Finance, has successfully secured a EUR507.5 million, 15-year facility to support its sustainable development agenda. This transaction benefits from a Partial Risk Guarantee (PRG) of EUR200 million provided by the International Development Association (IDA) and a second-loss insurance cover of up to EUR614 million (principal plus interest) from ATIDI for the tenor of the loan. The facility will enable the Government of Benin to undertake a critical debt reprofiling exercise to buy back part of the country's Eurobonds. The resulting debt savings will be strategically allocated to finance or refinance eligible expenditures under the country's SDG Framework. Nairobi — The African Trade & Investment Development Insurance (ATIDI) supported the Republic of Benin's latest financing transaction, providing a second-loss guarantee for Deutsche Bank's EUR 507.5 million loan to the country. This milestone transaction reinforces ATIDI's commitment to unlocking access to innovative financial solutions that enhance economic stability and sustainable development across Africa. The senior unsecured amortizing term loan, arranged solely by Deutsche Bank, is backed by a first-loss guarantee of up to EUR200 million from the International Development Association (IDA), part of the World Bank Group. ATIDI's second-loss guarantee complements this structure, covering the remaining principal and interest, thereby strengthening investor confidence and reducing financing costs for Benin. "This landmark financing demonstrates the power of strategic partnerships in unlocking sustainable investment for African economies. Our collaboration with Deutsche Bank in supporting the Republic of Benin highlights ATIDI's essential role in facilitating innovative financial solutions that enhance fiscal resilience. By providing a second-loss guarantee, we help ensure that Benin secures long-term, cost-effective financing, reinforcing its economic stability while channelling resources toward its sustainable development goals," ATIDI CEO Manuel Moses said. ATIDI's involvement underscores its unique role in providing risk mitigation solutions that enable African sovereigns to access long-term, cost-effective financing on favorable terms. This transaction is the first IDA-backed guarantee under the World Bank's new guarantee platform launched in July 2024. Key Highlights of the Transaction: Debt Reprofiling - The facility will provide fiscal space for Benin to reprofile its debt, ensuring long-term financial sustainability. SDG Alignment - Savings from the transaction will be channeled toward priority projects under Benin's SDG Framework. Risk Mitigation - The IDA's Partial Risk Guarantee and ATIDI's second-loss insurance cover provide robust risk mitigation, enhancing investor confidence and ensuring the successful execution of the facility. Commenting on the facility, Deutsche Bank Managing Director Maryam Khosrowshahi said the transaction consolidates the Bank's position as a leading arranger of complex transactions on the African continent, notably after being named Best Foreign Investment Bank in Benin for the 2nd year in a row by EMEA Finance African Banking Awards 2024. 'We are proud to have acted as sole mandated lead arranger and sole lender to the Republic of Benin on this novel transaction with IDA and ATIDI. We leveraged our successful financing track-record with the Republic of Benin as well as our excellent relationship with the Republic's advisor Rothschild & Co, and extensive transaction experience with the World Bank Group and ATIDI to deliver this critical financing in an effective and timely manner. Timing was indeed of the essence as the Facility was signed on 8 January 2025 concurrently to the announcement of a tender offer targeting up to EUR 250 million of Benin's EUR2032s notes and of a new USD 500 million bond issue to complement the country's 2025 budgetary needs.' The facility was concluded in parallel with Benin's return to international capital markets through a USD500 million bond issuance. A portion of the loan proceeds was allocated to a debt reprofiling exercise, including the buyback of Benin's EUR 2032 bond. By extending the average maturity of its public debt portfolio and achieving substantial debt service savings, Benin can redirect funds toward strategic initiatives under its SDG financing framework, driving long-term social and economic impact. ATIDI remains at the forefront of de-risking African economies and facilitating transformative financial solutions. Through partnerships with global financial institutions like Deutsche Bank and development partners such as the World Bank Group, ATIDI continues to provide innovative credit and investment insurance products that foster sustainable growth across Africa. About ATIDI ATIDI was founded in 2001 by African States to cover trade and investment risks of companies doing business in Africa. ATIDI predominantly provides Political Risk, Credit Insurance and, Surety Insurance. Since inception, ATIDI has supported USD85 billion worth of investments and cross border trade into Africa. For over a decade, ATIDI has maintained an 'A/Stable' rating for Financial Strength and Counterparty Credit by Standard & Poor's, and in 2019, ATIDI obtained an A3/Stable rating from Moody's, which has now been upgraded to A2/Positive. For further inquiries, please contact: Lawrence Mensah | ATIDI| Kenya Re Towers, 5th Floor | off Ragati Road – Upper Hill| Email: OR
Zawya
25-03-2025
- Business
- Zawya
Tunisia joins African Trade & Investment Development Insurance
Tunis: Tunisia has just joined the African Trade & Investment Development Insurance (ATIDI) and will participate in its capital, under the terms of an agreement inked Monday between the Economy and Planning Ministry and ATIDI. As such, Tunisia becomes the first country in North Africa to join the pan-African multilateral insurer and its 25th member, said Economy and Planning Minister Samir Abdelhafidh. This membership testifies to Tunisia's willingness to step up investments and boost trade in Africa, through mechanisms to facilitate access to financing and reduce risk costs, the minister pointed out. This agreement will help Tunisia make the most of ATIDI's various insurance services, he added. Founded in 2000, ATIDI is a pan-African organisation that provides trade credit and political risk insurance to companies, investors and lenders interested in doing business in Africa. © Tap 2022 Provided by SyndiGate Media Inc. (
Zawya
19-02-2025
- Business
- Zawya
Ethiopia signs memorandum of understanding with ATIDI to support PPP renewable energy projects
Addis Ababa, Ethiopia: The Federal Democratic Republic of Ethiopia, represented by the Ministry of Finance and Ethiopian Electric Power (EEP), has signed a Memorandum of Understanding (MoU) with the African Trade Insurance Agency (ATIDI), a leading pan-African multilateral trade and investment insurer. This milestone agreement is designed to accelerate Ethiopia's transition to clean energy by attracting foreign investment into renewable energy projects through ATIDI's Regional Liquidity Support Facility (RLSF). The MoU establishes a framework for collaboration between Ethiopia and ATIDI, ensuring that Independent Power Producers (IPPs) or Public Private Partnerships can leverage RLSF, a liquidity support mechanism developed by ATIDI in partnership with KfW Development Bank and Norad. RLSF provides financial protection to IPPs/PPPs by availing and accelerating payments owed by state-owned utilities, addressing a key challenge in the energy sector by enhancing payment security and financial stability. In his key message H.E. Ahmed Shide, Ethiopia's Minister of Finance, said 'through this partnership, Ethiopia aims to facilitate timely payments to developers, mitigate financial risks, strengthen the bankability of power purchase agreements (PPAs), and enhance the creditworthiness of EEP'. His Excellency further strengthened his message by stating that 'these efforts will create a more attractive investment environment for renewable energy projects'. Ethiopia becomes the 11th ATIDI member state to sign the RLSF MoU joining Benin, Burundi, Côte d'Ivoire, Ghana, Kenya, Madagascar, Malawi, Togo, Uganda and Zambia. Since its inception, guarantees worth USD24.7 million have been approved under the RLSF portfolio; in turn facilitating investments totaling USD373.1 million and the development of 181.95 MW of installed renewable energy capacity across Africa. Ethiopia has made significant strides in expanding its energy sector, primarily relying on hydropower as the backbone of its electricity generation. The Ethiopian government aims to diversify this energy mix by leveraging its vast renewable resources including wind, solar, and geothermal energy to enhance reliability and sustainability. This collaboration marks a significant step towards a more resilient and investor-friendly renewable energy landscape in Ethiopia. With ATIDI's support, the country is poised to achieve its energy transition goals while ensuring financial stability for its power sector stakeholders. Quote from Manuel Moses, CEO, ATIDI "We are honored to partner with the Government of Ethiopia and Ethiopian Electric Power to support the development of the country's renewable energy sector. Through our liquidity support, this collaboration will not only reduce financial risks but also attract more investment into Ethiopia's energy infrastructure. We believe that this partnership will help accelerate the growth of Ethiopia's renewable energy capacity and contribute to the broader goal of sustainable development across the African continent." H.E Minister Ahmed Shide, Minister of Finance, Federal Democratic Republic of Ethiopia 'Ethiopia has embarked on a comprehensive economic reform agenda known as the Homegrown Economic Reform Agenda (1&2). This initiative aims to address structural challenges and promote sustainable economic growth. The key aspects of the reform are creating Macroeconomic Stability; Investment and Trade. Efforts are being made to enhance the investment climate and promote trade by simplifying regulations, improving infrastructure, and encouraging private sector participation. The Regional Liquidity Support Facility (RLSF) is expected to play great role by enhancing the bankability of PPP projects and the sustainable implementation of such projects. The reform also aims to boost productivity in key sectors such as agriculture, manufacturing, and services to drive economic growth and create jobs. Investment Attraction too focuses on creating improved investment climate that has already attracted foreign direct investment, particularly in sectors like energy, manufacturing, and agriculture. We look forward to expanding this positive collaboration with ATIDI to cover additional sectors other than energy.' About ATIDI ATIDI was founded in 2001 by African States to cover trade and investment risks of companies doing business in Africa. ATIDI predominantly provides Political Risk, Credit Insurance and, Surety Insurance. Since inception, ATIDI has supported USD85 billion worth of investments and trade into Africa. For over a decade, ATIDI has maintained an 'A/Stable' rating for Financial Strength and Counterparty Credit by Standard & Poor's (S&P), and in 2019, ATIDI obtained an A3/Stable rating from Moody's, which has now been revised to A3/Positive. More about ATIDI: Media registration link: About the Regional Liquidity Support Facility (RLSF) RLSF is a guarantee instrument provided by ATIDI to renewable energy Independent Power Producers (IPPs) that sell the electricity generated by their projects to state-owned power utilities, located in ATIDI member states that have signed the RLSF Memorandum of Understanding. RLSF was launched in 2017 by ATIDI and the German Development Bank, KfW, with financing from the German Federal Ministry for Economic Cooperation and Development (BMZ); in 2022, the Norwegian Agency for Development Cooperation (Norad) committed additional funding towards its continued implementation. RLSF has a capacity of USD153.7 million and supports small and mid-scale renewable energy projects with an installed capacity of up to 100 MW (larger projects can be considered on a case-by-case basis) by protecting the projects against the risk of delayed payments by public offtakers; in turn improving project bankability and ensuring that more projects reach financial close.
