IFC, BOAD, and BII support regional capital markets through multi-country securitization aligned with responsible business and green finance framework. ESG BROADCAST shares key takeaways.
In a landmark financial innovation for West Africa, IFC, the West African Development Bank (BOAD), and British International Investment (BII) have anchored a securitization issuance by NSIA Banque Benin, marking the first structured finance deal of its kind in the country and part of a multi-country initiative across the West African Economic and Monetary Union (WAEMU). The XOF52 billion (USD 90.4 million) bond, issued by BOAD’s securitization vehicle Keur Samba, will expand lending to micro, small, and medium enterprises (MSMEs) in Benin, Senegal, and Togo over the next five years.
This is the third securitization under BOAD’s Keur Samba program and the first executed in Benin, deepening regional capital markets and establishing a model for scalable MSME finance. The bond was oversubscribed by 15%, reflecting robust investor confidence in a region where access to long-term, local currency funding remains constrained.
IFC invested nearly XOF14 billion (USD 25 million), while BII and BOAD contributed XOF8 billion each. Additional participation came from local banks, pension funds, and insurance companies. At least 25% of proceeds are earmarked for women-led MSMEs and 10% for climate-focused financing, reinforcing gender equity and climate risk mitigation in regional finance.
Securitization enables the pooling of illiquid MSME loans into tradable securities via a regulated, bankruptcy-remote special purpose vehicle. This structure enhances liquidity, reduces concentration risks, and supports more efficient capital allocation by transforming on-balance-sheet assets into investable instruments.
“Through the Keur Samba program, BOAD is deploying innovative financing tools tailored to our region,” said BOAD President Serge Ekué. “This first-of-its-kind transaction in Benin reflects our commitment to providing sustainable responses to the private sector’s financing needs.”
The World Bank Group played a key role through pre-investment technical assistance from its J-CAP program, which supported legal and regulatory modernization and enabled credit enhancements. IFC’s investment was also backed by the IDA Private Sector Window Local Currency Facility to facilitate long-term lending in local currency.
“This milestone issuance enables inclusive economic growth by expanding access to credit for underserved businesses, including women and climate-focused enterprises,” said Ethiopis Tafara, IFC Vice President for Africa.
Strategic significance lies in the development of a cross-border, ESG-aligned securitization platform that strengthens WAEMU capital markets while mobilizing private finance for inclusive and sustainable growth. The model demonstrates replicability across other regions and sectors including agriculture, housing, and energy.
ESG BROADCAST will continue monitoring the updates related to this topic. Stay tuned to be updated on the related policy and pivotal regulatory shifts.
