The Republic of Benin announces the successful raising from an international bank for a total amount of 260M € (171 billion CFA Francs). This very innovative operation led by the Ministry of Economy and Finance demonstrates Benin’s ability to attract private international investors. “This is a milestone in the history of Benin. We have just completed the first international financing from a private investor with the support of the World Bank for an exceptional operation which will lower the cost of the debt burden and allow us to strengthen our commitments in terms of priority social spending ” declared the Minister of Economy and Finance Romuald WADAGNI. The conclusion of this transaction allows the government to improve its debt profile and commit to repay a portfolio of existing loans to local banks with an average maturity of around 2 years and thus finance priority social spending. This loan of 260M € is partially guaranteed by the World Bank, up to 40% of the principal. It bears an interest margin of less than 3.5% for a maturity of 12 years. The use of an innovative insurance structure for lenders, provided by ATI-ACA, also made it possible to attract an international bank on these exceptionally favorable terms in Benin. After obtaining an international financial rating of B + (Standard & Poor’s) this year and this successful international transaction, the Minister of Economy and Finance Romuald WADAGNI intends to continue opening up Benin to foreign investors in the interest of the Beninese.
