BANQUE OUEST AFRICAINE DE DÉVELOPPEMENT AND CORDIANT CAPITAL INC ARE LAUNCHING A PARTNERSHIP TO PROMOTE PRIVATE INVESTMENTS IN INFRASTRUCTURES IN THE WAEMU COUNTRIES
Lomé, Togo – Banque Ouest Africaine de Développement (“BOAD”) is pleased to announce its partnership with Cordiant Capital Inc. (“Cordiant”) to launch a pair of funds focused on private infrastructure investments in member states of the West African Monetary Union [1] (“WAEMU” or “Region”). The two funds (“Funds”), each of which will have BOAD as lead investor, are an Infrastructure Preparation Fund (“Prep Fund”) and an Infrastructure Equity Fund (“Infrastructure Fund”)
The partnership between BOAD and Cordiant seeks to mobilize EUR 40 million for the Prep Fund and EUR 400 million for the Infrastructure Fund for investments in key infrastructure sectors mainly energy, transportation and telecommunications. BOAD is making initial capital commitments of CFA 12 billion (~EUR 18 million) and CFA 26.2 billion (~EUR 40 million) respectively to the Prep Fund and the Infrastructure Fund. Both Funds will be managed by Cordiant, an infrastructure asset manager, with a longstanding focus on emerging markets. In the context of this initiative, Cordiant will establish a local office in the Region to coordinate the Funds’ investment activities.
The president of BOAD, Mr. Christian Adovelande, commented, following the Board of Directors’ meeting of December 18th 2019 which approved BOAD’s capital commitment to the two funds: “Our partnership with Cordiant represents an important milestone in BOAD’s efforts to address the infrastructure gap in the WAEMU region with innovative solutions that also support the strong economic growth of the sub-region. BOAD’s initial capital commitment of CFA 38.2 billion (EUR 58 million) across the two infrastructure funds is the largest ever in the organization’s 45 years history. It underscores the priority BOAD places on financing critical infrastructure in the Region, and our hope is that this investment will be a catalyst for infrastructure investments by the private sector in the Region.
Speaking on behalf of Cordiant, Jean Francois Sauvé, Co-CEO of Cordiant, said: “We are excited for BOAD’s vote of confidence in Cordiant to manage this important infrastructure initiative. Over the years, Cordiant has developed a strong transaction experience in infrastructure and related sectors in emerging markets, including in WAEMU economies. The combination of rapid economic growth, improving governance, attractive demographics including rising populations and associated urbanization, support the case for long-term private sector investing in infrastructure assets in the Region. Cordiant is pleased to be able to contribute to these developments in the WAEMU countries.”
Additionally, Obie McKenzie, Vice Chairman of Cordiant, said: BOAD’s effort to catalyze infrastructure investments in the Region would necessitate joint efforts with Cordiant in advancing solutions that support deepening of the regional capital markets and mobilization of private and institutional investors (both local and international) into infrastructure investments. Our goal through these efforts is not only to generate attractive risk-adjusted returns for the Funds’ investors, but to have significant long-term developmental impact on the Region as well.”
About Banque Ouest Africaine de Développement
Banque Ouest Africaine de Développement is the Development Finance Institution for the member states of the WAEMU. Created in 1973, its shareholders comprise the eight member states of WAEMU, their Central Bank (the Central Bank of West African States – BCEAO) and several international institutions and foreign governments, in particular, the African Development Bank (AfDB), the European Investment Bank (EIB), KFW, France, Belgium, China, India, Morocco, etc. BOAD is rated ‘Baa1’ with a stable outlook by Moody’s and ‘BBB’ with a stable outlook by Fitch Ratings. Its headquarters are in Lomé, Togo.
For more information: www.boad.org.
About Cordiant Capital
Cordiant Capital Inc. is an emerging market-focused infrastructure asset manager headquartered in Montreal, Canada. Founded in 1999, Cordiant has a strong focus on originating and structuring transactions in asset-rich focus areas such as energy infrastructure, transportation infrastructure, telecommunications infrastructure and agriculture. The firm has an institutional client base in Europe and North America which includes large insurers, pension plans and G7 governments. It has managed over US$ 4 billion in cumulative capital commitments across 7 infrastructure funds, including 1 Africa focused equity fund and 1 Africa focused loan infrastructure fund. Cordiant has offices in Montreal, London, and São Paulo.
For more information: www.cordiantcap.com.
[1] The member states of the West African Monetary Union are Benin, Burkina-Faso, Côte d’Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo