BOAD CLOSES A SERIES OF POLICIES WITH THE PRIVATE STRUCTURED CREDIT INSURANCE MARKET IN A MOVE TOWARDS A MORE ACTIVE MANAGEMENT OF ITS BALANCE SHEET

Lomé, 15 December 2021. As part of its “originate to distribute” approach, BOAD has just subscribed to a series of insurance policies to cover the Borrower default risk across a group of projects in its loan portfolio.

This step, which is part of its evolving active balance sheet management policy, enables the institution to rely on the support of ‘A’ to ‘AA’ rated specialist insurers based in London and Paris through the transfer of part of its exposure to the risk of non-payment by its borrowers. BOAD will therefore avail of the ability to increase its capacity to mobilise resources for the benefit of its member countries and the WAEMU private sector.

These first insurance policies bring BOAD in line with its peers with regard to its approach to credit insurance. This demonstrates BOAD’s strong determination to promote increased commitments in its area of operation, as per the strategic goals set by the 2021-2025 plan “Djoliba”.

Commenting on these subscriptions, President Serge Ekué said: “BOAD is committed to exploring all avenues for financial engineering in the service of its member countries and the well-being of their populations. Today, in insuring part of its portfolio, BOAD is making its balance sheet more agile and increasing its capacity to finance the development of WAEMU countries. I am delighted with this.”

Over its 48 years of operation, BOAD has contributed to the funding of 1,262 projects undertaken by member countries and private enterprises of the West African Economic and Monetary Union (WAEMU) for a total amount of XOF6,618.7 billion (or about €11 billion).

About BOAD

The West African Development Bank (BOAD) is the common development finance institution of the member countries of the West African Economic and Monetary Union (WAEMU). It is an international public institution whose purpose, as provided under Article 2 of its Articles of Association, is to promote the balanced development of its member countries and foster economic integration within West Africa by financing priority development projects. It is accredited to the three climate finance facilities (GEF, AF, GCF). Since 2009, BOAD sits as an observer at the UNFCCC and actively participates in discussions on devising an international climate finance system. Since January 2013, it has been home to the first Regional Collaboration Centre (RCC) on Clean Development Mechanism (CDM), whose aim is to provide direct support to governments, NGOs and the private sector in identifying and developing CDM projects. The Bank is committed to carbon neutrality by 2023 and is an active member of the International Development Finance Club (IDFC) bringing together 24 national, regional and bilateral development banks.

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