The West African Development Bank (BOAD) announced that last week it closed a new securitization operation of 160 billion CFA francs, oversubscribed in less than a day.

The West African Development Bank (BOAD) has closed a new securitization transaction of 160 billion CFA francs in record time, once again confirming its leading position in financial innovation in West Africa. The operation consisted of three phases, a first in the sub-region in terms of alignment with international standards. la BOAD The two other senior brackets for 120 billion FCFA at a rate of 4.5% and junior for 11.25 billion FCFA, representing together more than 80% of the operation, were bought by here-m even, in a transaction which, unlike the first, had the objective not only “to obtain liquidity, but above all to optimize the balance sheet, to protect the bank's credit rating, the only institution in the sub-region to benefit from an international “investment grade” rating, and to improve the quality of the credit portfolio”.

For Adji Sokhna Mbaye, Director of BOAD Securitization, deal arranger, “the lower brackets (mezzanine and junior bracket) play the role of defense lines. The junior bracket is the first line of defense, followed by the mezzanine bracket. In the event of default or delay, the junior bracket is impacted first, which minimizes the risk for the senior bracket. In addition, a liquidity reserve within the transaction significantly reduces the risk for senior investors. ”.