Business

AfDB, Trade Insurance in $500 million deal

ESTHER MSETEKA, Lusaka
THE African Development Bank (AfDB) and African Trade Insurance Agency (ATI) have successfully completed a US$500 million credit insurance deal structured to cover a portion of the bank’s portfolio of non-sovereign operations in Africa.
The transaction is expected to have an important demonstration effect to encourage similar institutions to invest more on the continent in the future.
In a statement yesterday, AfDB said the deal is the second balance sheet optimisation transaction under the “Room to Run” initiative following the successful signing of the synthetic securitisation transaction last month.
“While ATI will be the direct insurer facing the African Development Bank, the transaction involves the participation of a number of Lloyd’s and Company private reinsurers who will share the risk on African financial institutions http://epaper.daily-mail.co.zm/

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