By Ayomide Otitoju
The West African Development Bank (BOAD) has strengthened its financing capacity by expanding its sovereign portfolio credit-insurance policy, initially signed in June 2023, to XOF 297.6 billion (approximately EUR 454 million). The policy, underwritten by a consortium of leading private insurers, forms a key component of BOAD’s strategic plan, Plan Djoliba, aimed at optimizing risk management and expanding financing for WAEMU member states.
The expansion signals renewed confidence in BOAD’s strong capital base and reinforces the resilience of its financing model. With insurers rated A- and AA-, the move improves the average rating of BOAD’s loan portfolio, supporting the bank’s efforts to enhance its investment-grade standing.
Combined with securitization, the credit-insurance programme serves as a cornerstone of BOAD’s strategy for risk distribution and credit enhancement. Following the increase, the total insured exposure stands at roughly EUR 700 million, representing 15% of the bank’s total loan portfolio.
“The extension and increase in size of this insurance policy reflect markets’ confidence in the strength of our capital base and the quality of our management,” said BOAD President Serge Ekue. “This mechanism enhances our risk profile and that of our borrowers, enabling us to raise resources on optimal terms to sustainably finance the development of our member countries. It is an essential lever for delivering the ambitions of Plan Djoliba and reinforcing BOAD’s role as a catalyst for regional development.”
The enlarged policy also highlights BOAD’s preferred creditor status and its pivotal role across the WAEMU region, strengthening its capacity to mobilize financing on favourable terms for member states.
