Senegal pioneers African utility securitisation

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Senegal's power utility, Senelec, has issued a $215 million bond backed by unpaid customer bills, the first securitisation by an African public utility. Half of the amount will finance green projects, with the rest supporting sustainability targets. With an interest rate of  8%, it might allow access to more favourable financing than traditional lending.

• Securitisation bonds enable companies to unlock capital from illiquid assets. This deal will allow Senelec to fund long-term goals without depending on traditional government or development bank backing.

• African securitisation deals are on the rise. Sun King, an off-grid solar firm, set the precedent in July with a $156 million securitisation in local currency. Ivory Coast then rolled out its deal to finance its national "Electricity for All Program."

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