Breakthrough for supra ABS as AfDB debuts

Adesina, Akinwumi (AfDB) 230x150 from Afdb
By Jon Hay
18 Sep 2018

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 ...

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