Manuel Moses, ATIDI CEO. Photo | courtesy.
The African Trade and Investment Development Insurance (ATIDI) has backed a EUR 507.5 million loan from Deutsche Bank to the Republic of Benin.
The company provided a second-loss guarantee, reinforcing investor confidence and lowering borrowing costs for the West African nation.
The loan, arranged solely by Deutsche Bank, is part of a broader financial package aimed at improving Benin’s debt sustainability and funding its sustainable development goals.
It is supported by a first-loss guarantee of up to EUR 200 million from the International Development Association (IDA), part of the World Bank Group.
“This landmark financing demonstrates the power of strategic partnerships in unlocking sustainable investment for African economies,” said ATIDI CEO Manuel Moses.
“By providing a second-loss guarantee, we help ensure Benin secures long-term, cost-effective financing.” He added.
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The transaction marks the first use of IDA’s new guarantee platform launched in July 2024 and includes a debt reprofiling element to help Benin extend the maturity of its public debt.
Savings from the facility will be directed toward projects aligned with the country’s Sustainable Development Goals (SDGs).
Deutsche Bank Managing Director Maryam Khosrowshahi highlighted the bank’s role as sole lead arranger and lender, noting its long-standing relationship with Benin and collaboration with Rothschild & Co, the Republic’s advisor.
Signed on 8 January 2025, the facility coincided with a EUR 250 million tender offer on Benin’s EUR 2032 bonds and a new USD 500 million bond issue to support the 2025 national budget.
