Lomé, January 17, 2022 : As part of its ” origination to distribution” approach, BOAD has just taken out a series of insurance policies to cover the risk of default on part of the portfolio of projects it finances.
As part of its active balance sheet management policy, this move will enable the institution to draw on ratings from ‘A’ to ‘AA’ from specialist insurers based in London and Paris. Through this subscription, the WADB will thus share part of its exposure to the risk of non-repayment by its debtors, and benefit from the possibility of multiplying its capacity to mobilize resources for the benefit of its member states and the WAEMU private sector.
Through these first insurance policies, BOAD is adopting more international standards in credit risk management. It thus becomes one of the few institutions on the continent to use the private international credit insurance market. This demonstrates the BOAD’s firm determination to promote the growth of its commitments in its region of intervention, in line with the strategic objectives set out in the Djoliba 2021-2025 plan.
President Serge Ekué on these subscriptions ” The WADB is committed to exploring all means of financial engineering in the service of its member states and the well-being of their populations. Today, by 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 by this.
In its 48 years of existence, the BOAD has contributed to the financing of 1,262 projects by member states and private companies of the West African Monetary and Economic Union (UEMOA), for a total amount of 6,618.7 billion CFA francs (around 11 billion euros).
About West African Development Bank
The Banque Ouest Africaine de Développement (BOAD) is the joint development finance institution of the countries of the West African Monetary Union (WAMU). According to Article 2 of its Articles of Association, the BOAD’s purpose is to “promote the balanced development of member states and achieve economic integration in West Africa” by financing priority development projects. It is accredited with the three climate finance mechanisms (GEF, AF, GCF). Since 2009, BOAD has been an observer at the UNFCCC and has played an active role in discussions concerning the construction of an international architecture for climate finance. Since January 2013, it has been home to the first Regional Collaboration Center (CRC) on the Clean Development Mechanism (CDM), whose aim is to provide direct support to governments, NGOs and the private sector in identifying and developing CDM projects. It is committed to carbon neutrality by 2023 and is an active member of the International Development Finance Club (IDFC), which brings together 24 national, regional and bilateral development banks.
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