Senegal pioneers African utility securitisation

From the newsletter

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

• Securitisation bonds enable companies to unlock capital from illiquid assets. Senelec can fund long-term goals without 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.

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