Breakthrough for supra ABS as AfDB debuts
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The African Development Bank has become the first supranational bank to use a securitization sold to private investors to free up balance sheet capacity. The deal, four years in the making, demonstrates a new technique that could expand development banks’ firepower to promote development.
The AfDB has engaged in a synthetic securitization with Mariner Investment Group, a New York hedge fund, to transfer the mezzanine risk on a $1bn portfolio of about 40 loans to banks, project finance vehicles and companies.
Africa50, a new infrastructure fund set up by African governments, is ...Already a subscriber? Login
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