African Development Bank appoints Lead Advisor for new loan sharing platform
The African Development Bank has hired consultants to lead the structuring and execution of a new loan sharing platform.
The new platform, known as ‘Multi-Originator Synthetic Securitization Platform (SST Platform), will operate as a revolving, evergreen and scalable risk-transfer vehicle offering development finance institutions regulatory capital relief, improved balance sheet resilience, and a pathway to mobilize private investment across the region.
In simple words, the platform will offer banks a way to share and reduce risk on their loans without selling the loans themselves, and to do so together with other banks.
The African Development Bank is one of Africa’s larger development finance institutions. The group comprises three entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF).
Appointed Lead Advisor of the SST Platform is Societe Generale, a France-headquartered bank. The project is led by its investment banking and advisory business.
The initial phase of the SST Platform targets a $2 billion reference portfolio featuring diversified sectors, geographies, and risk profiles, and combining assets from the African Development Bank, Development Bank of Southern Africa and potentially other institutions.
In the long-term, the SST Platform is expected to introduce harmonized issuance documentation, standardized credit assessment approaches, and a shared Special Purpose Vehicle structure to attract participation by additional African and international development finance institutions.
Commenting on the project, Pascale Olivié, Senior Advisor at Societe Generale said: “Societe Generale is pleased to leverage its expertise in risk-transfer solutions to advise the African Development Bank in establishing a groundbreaking multi-originator synthetic securitization platform. This marks a significant milestone in advancing sustainable finance and attracting private investment for inclusive growth across Africa.”
Max Ndiaye, Senior Director at African Development Bank, added: “The SST Platform is expected to be a catalyst for expanding lending headroom for high-impact projects, positioning it as a cornerstone in Africa’s efforts to scale financing solutions that drive sustainable growth across the continent.”
