In this respect, BOAD has just announced the signing of a credit insurance policy for 278 billion FCFA (cv 424 million EUR), representing 11% of its overall loan portfolio, with a pool of nine leading private insurers based in Europe.
This major transaction comes 18 months after BOAD signed its first individual insurance policies. It marks a new milestone in the deployment of the “originate to distribute” method adopted by the Bank as part of the implementation of its Djoliba Strategic Plan.
It aims to raise the average rating of its overall loan portfolio, with a view to positively influencing its own investment grade rating.
By benefiting from the signatures of insurers rated from ‘A-‘ to ‘AA-‘, this portfolio insurance policy also testifies to BOAD’s ambition to use the credit insurance market on a long-term basis as a tool for distributing balance sheet exposures, in order to strengthen its financing capacity for the benefit of UEMOA member states. This is a common practice in so-called “mature” markets, and a structuring innovation in our region.
Given its size, this brand-new portfolio policy, which covers all WAEMU member states, attests to the insurance market’s appreciation of the particularly robust nature of BOAD’s preferred creditor status and its unique role within the WAEMU zone.
President Serge Ekué reacts as follows to this new mechanism for raising risk profiles “This insurance policy, which raises our risk profile and that of our borrowers, will enable us to raise resources on the best terms on the financial markets, and to be in line with the implementation of the DJOLIBA plan begun in 2021 with the ambition of financing CFAF 3,300 billion of projects for the benefit of the UEMOA member states by the end of this plan in 2025″.
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