The ECOWAS Bank for Investment and Development (EBID) has launched a CFAF 63 billion bond issue backed by ten existing loans. Senegal accounts for 68% of the outstanding principal on the transferred loans, followed by Côte d’Ivoire and Mali.
Of the total issue, CFAF 61.5 billion is offered to investors. The offer comprises a CFAF 12.5 billion five-year tranche paying 6.20% and a CFAF 49 billion seven-year tranche paying 6.65%. EBID is retaining a CFAF 1.5 billion subordinated tranche, which would absorb losses first. Subscriptions are open until 4 December.
The transaction transfers loans with CFAF 68.34 billion in outstanding principal to a dedicated fund. Raising cash against these loans gives EBID funds for new projects before the existing borrowers finish repaying their loans.
