The ALCB Fund has invested XOF 6 billion (USD 10 million) in the second securitisation of Banque Ouest Africaine de Développement (BOAD). As part of BOAD’s strategy to optimise its balance sheet and improve loan book quality, BOAD Titrisation has arranged the first multi-tranche securitisation in the WAEMU region.

The XOF 160 billion (USD 270 million) securitisation is composed of three tranches. The mezzanine tranche of XOF 28.75 billion (USD 50 million), rated AA+ by GCR West Africa, was offered to institutional investors, including ALCB Fund, while the other classes were fully subscribed by BOAD. This is the first time in the WAEMU region where a multi-tranched securitisation has been issued, and the first by an African-DFI with the intent of providing capital relief to facilitate portfolio growth.

The ALCB Fund invested ca. 20% of the mezzanine tranche and played an active role in the structuring of the operation. The Fund’s involvement included legal review on the transaction’s documents, technical support in the structuring and playing an anchor investor role. ALCB Fund’s investment was earmarked to private sector projects in the WAEMU region.

This issuance will support BOAD’s capacity to provide funding to developmental sectors such as infrastructure, agriculture, health and education. The Fund is proud to be a partner to BOAD for the sustainable development of the region and to broaden local capital markets. In March 2023, the Fund had also invested USD 10 million in the first securitisation of BOAD.

Mr. Brock Hoback, Fund Lead of the ALCB Fund, said: “The Fund is always proud to support innovative capital market transactions such as this new securitisation of BOAD. This is the first securitisation multi-layered securitisation in the WAEMU region, and the first mezzanine tranche offered to institutional investors. BOAD has a history of innovation in the region, and we are delighted to have actively engaged them onthis transaction. We hope this transaction will act as a calatlys for other securitisations in the region.”

Mr. Serge Ekue, President of BOAD, said: "The success of this second securitisation operation involving BOAD's non-sovereign portfolio assets reinforces the achievement of one of the objectives of our Djoliba Strategic Plan 2021-2025, namely the strengthening of our intervention capacities and their impacts, by increasing our financial resources and actively managing our balance sheet; while ensuring that our financial balances are respected and that the quality of BOAD's rating is maintained or even improved. We thank the ALCB Fund for their support and investment in this operation.”

Mrs. Adji M'Baye, Managing Director of BOAD Titrisation, arranger and fund manager, added: "The continued success of our securitisation operations, particularly with the introduction of the mezzanine tranche, demonstrates the importance of this financing tool in attracting diversified investments and securing the financing of projectsessential to the economic and social growth of the region."

Ababacar Diaw, CEO of Impaxis Securities, lead bookrunner to the BOAD transaction, stated: “The role of the ALCB Fund in this transaction was highly strategic in this first multi-layered securitisation in WAEMU region. The Fund has work with Impaxis for more than 10years, and we are excited by working with them to continue to broaden the scope and sophistication of the WAEMU capital markets.”