The AfDB has taken out insurance with a group of investors led by Mariner Investment Group for a loan portfolio of $ 1 billion.
The transaction concluded in September was through synthetic securitization in which the hedge fund assumed a default risk of $ 152 million.
This sophisticated coverage allows the African Bank to reduce its portfolio risk while increasing its ability to intervene in the market. It remains to be seen in what conditions Mariner Investment Group has accepted such exposure on African risk / According to analysts, this is the first time that a development institution uses this type of coverage.
The deal concluded by the ADB covers about 40 loans for power, transmission and financing projects in more than 15 African countries.
