ATIDI Strengthens Benin’s Fiscal Resilience with EUR507.5 Million Loan Guarantee
The African Trade & Investment Development Insurance (ATIDI) has played a pivotal role in enhancing Benin’s fiscal stability by providing a second-loss guarantee for a EUR507.5 million loan from Deutsche Bank.
The loan, which will support Benin’s sustainable development agenda, is backed by a Partial Risk Guarantee (PRG) of EUR200 million from the International Development Association (IDA), along with ATIDI’s second-loss insurance covering up to EUR614 million in principal and interest.
This strategic financing solution allows Benin to undertake a vital debt reprofiling exercise, enabling the buyback of part of the country’s Eurobonds. The resulting debt savings will be used to finance key projects under Benin’s Sustainable Development Goals (SDG) Framework.
ATIDI’s second-loss guarantee reinforces investor confidence and reduces financing costs for the Government of Benin. According to ATIDI CEO Manuel Moses, “This landmark financing demonstrates the power of strategic partnerships in unlocking sustainable investment for African economies.”
He emphasized that ATIDI’s involvement helps Benin secure long-term, cost-effective financing, reinforcing economic stability and driving the country’s SDG initiatives.
The facility is the first IDA-backed guarantee under the World Bank’s new guarantee platform, launched in July 2024. The deal also positions Deutsche Bank as a leading arranger of complex transactions in Africa.
Maryam Khosrowshahi, Managing Director at Deutsche Bank, highlighted the transaction’s timely execution, noting the bank’s expertise in supporting Benin’s financing needs, including the EUR250 million bond buyback and the USD500 million bond issuance to complement the country’s 2025 budget.
In addition to debt reprofiling, the loan allows Benin to extend the maturity of its public debt portfolio, freeing up funds for strategic investments that will drive social and economic impact.
ATIDI’s continued role in providing risk mitigation and facilitating innovative financial solutions emphasizes its commitment to de-risking African economies and promoting sustainable growth across the continent. With a strong track record of supporting investments and trade across Africa, ATIDI remains a key player in fostering fiscal resilience and development in African nations.
