ATIDI Bolsters Benin’s Fiscal Resilience with Backing for €507.5M Deutsche Bank Loan
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.”
– Manuel Moses, CEO, ATIDI
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.
Source: Techafricanews
