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This milestone transaction reinforces ATIDI’s commitment to unlocking access to innovative financial solutions that enhance economic stability and sustainable development across Africa.
The African Trade & Investment Development Insurance (ATIDI) has played a key role in supporting the Republic of Benin’s recent financing initiative by offering a second-loss guarantee on a €507.5 million loan from Deutsche Bank. This 15-year loan will help advance Benin’s sustainable development goals.
Deutsche Bank solely arranged the senior unsecured amortizing term loan, which is partially secured by a first-loss guarantee of up to €200 million from the International Development Association (IDA), part of the World Bank Group. ATIDI’s second-loss guarantee covers the remaining loan principal and interest, enhancing investor confidence and helping to lower borrowing costs for Benin.
“This milestone deal illustrates the impact of strategic collaboration in driving sustainable investment across Africa. Our partnership with Deutsche Bank to support Benin showcases ATIDI’s critical role in delivering innovative financial tools that build fiscal strength,” said ATIDI CEO Manuel Moses. “By offering a second-loss guarantee, we help ensure Benin can access long-term and affordable financing to support its development priorities.”
ATIDI’s participation highlights its distinct capability in offering risk mitigation solutions that allow African governments to obtain long-term financing under favorable terms. This transaction also marks the first use of an IDA-backed guarantee under the World Bank’s newly introduced guarantee platform, launched in July 2024.
Key features
The facility will provide fiscal space for Benin to re-profile its debt, ensuring long-term financial sustainability. The savings from the transaction will be channeled toward priority projects under Benin’s SDG Framework. The IDA’s Partial Risk Guarantee and ATIDI’s second-loss insurance cover provide robust risk mitigation, enhancing investor confidence and ensuring the successful execution of the facility.
Commenting on the facility, Deutsche Bank Managing Director Maryam Khosrowshahi said the transaction consolidates the Bank’s position as a leading arranger of complex transactions on the African continent.
“We are proud to have acted as sole mandated lead arranger and sole lender to the Republic of Benin on this novel transaction with IDA and ATIDI. We leveraged our successful financing track record with the Republic of Benin as well as our excellent relationship with the Republic’s advisor Rothschild & Co, and extensive transaction experience with the World Bank Group and ATIDI to deliver this critical financing in an effective and timely manner. Timing was indeed of the essence as the Facility was signed on 8 January 2025 concurrently to the announcement of a tender offer targeting up to EUR 250 million of Benin’s EUR2032s notes and of a new USD 500 million bond issue to complement the country’s 2025 budgetary needs,” she said.
The facility was concluded in parallel with Benin’s return to international capital markets through a USD500 million bond issuance. A portion of the loan proceeds was allocated to a debt reprofiling exercise, including the buyback of Benin’s EUR 2032 bond. By extending the average maturity of its public debt portfolio and achieving substantial debt service savings, Benin can redirect funds toward strategic initiatives under its SDG financing framework, driving long-term social and economic impact.
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ATIDI is an investment, trade and political risk-mitigation institution on the African continent intended to provide insurance against political and commercial risks in order to attract foreign direct investment to the region. With both a commercial and developmental mandate, ADITI aims at improving Africa’s risk perception and attracting affordable investments in support of sovereign governments and the private sector.
ATIDI remains at the forefront of de-risking African economies and facilitating transformative financial solutions. Through partnerships with global financial institutions like Deutsche Bank and development partners such as the World Bank Group, ATIDI continues to provide innovative credit and investment insurance products that foster sustainable growth across Africa.
