They also cover non-sovereign guaranteed financing of eligible public sector enterprises, as well as financing of regional development finance institutions
The Board of Directors of the African Development Bank Group has approved the Bank’s Policy on Non-sovereign Operations (NSO). The document provides the framework within which the Bank through its private sector lending window may provide financing or investment without sovereign guarantees to private and public entities that meet specific eligibility requirements on non-concessional terms.
Non-sovereign Operations (NSOs) refers to financing and investment operations that are not guaranteed by a State, covering mostly private sector transactions. They also cover non-sovereign guaranteed financing of eligible public sector enterprises, as well as financing of regional development finance institutions.
The approval of the Policy comes at a critical moment when the Bank is seeking to accelerate inclusive and sustainable economic growth, and crowd in more private sector funding for strong and inclusive growth to drive economic transformation and sustainable development in its Regional Member Countries (RMCs).
The NSO Policy will complement the Bank’s overarching 2013 Private Sector Development policy framework, notably, by defining what the Bank will do in the area of non-sovereign lending. Within this context, the objective of the Bank’s non-sovereign operations is to help accelerate the continent’s transformation through various financial support mechanisms and products including loans, lines of credit, guarantees, blended finance, equity investments and trade finance. This would enable the Bank to contribute to the sustainable economic growth and inclusive social development of its RMCs individually and jointly, in fulfilment of the Bank’s mandate.
More specifically, the Bank’s engagement in its selected non-sovereign operations will aim to maximise the catalytic impact of its limited resources, while seeking to promote inclusive growth and the gradual transition to ‘green growth’ in its RMCs. It will also help scale up financing in the Bank’s High 5 priority areas of intervention.
Under this NSO Policy, the Bank would provide financing to non-sovereign operations subject to four conditions: (i) the borrower is a private enterprise or an eligible public sector enterprise; (ii) the operations are financially sound; (iii) the operations should result in satisfactory development outcomes, including supporting or creating opportunities for private sector development; and (iv) the Bank brings additionally, which could be either financial or non-financial.
The Policy would ensure that NSOs: (i) are well-prepared with clear value added/additionally brought by the Bank; (ii) are technically, economically and financially sound, and diligently managed, adhering to high ethical norms; (iii) are environmentally and socially sustainable; and (iv) have solid prospects of generating significant development results in the RMCs in which they are implemented.
The NSO Policy does not apply to the Bank’s sovereign loans and sovereign-guaranteed loans. Such operations will continue to be governed by the relevant policies that guide the Bank Group’s public sector operations.
Grand Pela Hotel and Suites promises exciting times to local, foreign guests
Grand Pela Hotels and Suites Abuja has stated that the star facility has embraced fresh perspective in its quest to be the leading hotel of choice in Nigeria and beyond.
The Hotels said it will continue to provide proactive approach to hotel management with the specific needs of all stakeholders, particularly guests and visitors in mind, even as it completes and launch its new multi million naira international events and conference center as part of its plans to take Nigeria’s hotel and hospitality industry to greater heights.
Chairman and Chief Executive Chief Peter Chukwudi Nwakeze, made these disclosures in Abuja, while showing journalists the world class facilities the hotel has provided.
He said because of the high standards that Grand Pela Hotels and Suites has set for the industry in Nigeria, that the Durumi, based hotel will provide expertise management training of international standard to hotels across Nigeria in order to expand the industry in Nigeria and bring it up to speed in line with global best standards.
Nwakeze said the multi million naira events and conference was designed and built with the utmost comfort of guests and visitors in mind, pointing out the group has gone to great length to ensure that the events and conference center changes the landscape and experience of major events hosting.
According to him, the facilities and luxury available at Grand Pela Hotels and Suites is comparable to anywhere in the world, saying that the hotel’s newly built events and conference center is capable of sitting more than two thousand people at once will change of face of the hospitality industry in Abuja and in the country.
“We want to carve a niche in the hospitality business that will leave a lasting and unmatched experience in our customers,” the Grand Pela Hotel Chairman said.
The Grand Pela Chairman explained that the Hotel is strategically located in the Federal Capital City, and can compete and surpass any in the world. The world class facilities are available for the comfort of guests and for the development of the industry in Nigeria, he said.
“ We have made massive investments in the comfort and luxury of guests at the hotel which we consider as paramount, because the hotel decided to make a paradigm shift by adding new features which represents the chairman’s core values of excellence and professionalism in order to change the old perception of Abuja hotels by tourists and visitors.
“These new features will be observed as you inspect our facilities and rooms. The hotel is prepared and offering unique and exceptional services that are consistent and inspiring. It remains the most sort after hotel in Abuja. Grand Pela Hotels and Suites brand is synonymous with creativity and excellence”, he said.
Nwakeze also noted that the mission statement which is to offer a unique and exceptional services that will promote Grand Pela Hotel and Suites into an inspiring and most sort after brand synonymous with creativity and excellence is apt, because it represents his personal values and that of the hotel.
African Development Bank and partners’ innovative Room2Run securitization will be a model for global lenders
Room2Run will create space for more lending in pursuit of development agenda
Sharing the lessons learned will shorten the path for other MDB’s
Room2Run, the African Development Bank and partners’ innovative US $1 billion synthetic securitization of a portfolio of seasoned African Development Bank private sector loans, will serve as a model for other lenders, help reduce costs, and shorten execution time, finance experts told participants at a workshop on Saturday.
The landmark securitization instrument, a first for any multilateral development bank, has been described by investors as a “strong market fit.” The instrument offers other multilateral development banks and investors a roadmap for innovative financing and new ways to explore the release of much-needed capital to impact financing and catalyze private capital in developing markets.
“This is particulat, asrly importan it opens the door for significant scale in the future, both in Africa and in other continents where your institutions are present and financing development projects,” said Swazi Tshabalala, the Bank’s Vice President of Finance.
About 70 participants from the international finance community – investors, bankers and other financial institutions, attended the workshop entitled “A Look at Optimizing MDB Balance Sheets Through Securitization, “organized by the African Development Bank and the Mariner Investment Group, LLC (Mariner), a key investor in the deal. The participants heard presentations on the structure of the securitization, challenges and lessons learned, followed by a question and answer session.
The workshop took place on the sidelines of the International Monetary Fund and World Bank annual meetings and the 2018 Global Infrastructure Forum in the Indonesian island of Bali. The AfDB’s Chief Risk Officer Tim Turner said the meeting was convened in response to massive interest from sister development institutions following the announcement of Room2Run in September, 2018.
The Bank, the European Commission, Mariner Investment Group, LLC (Mariner), Africa50, and Mizuho International plc announced the pricing of Room2Run on 18 September in Ottawa, Canada – the first-ever portfolio synthetic securitization between a Multilateral Development Bank (MDB) and private sector investors, pioneering the use of securitization and credit risk transfer technology to a new and previously unexplored segment of the financial markets.
Tshabalala said Room2Run was timely in the light of new regulations in banking that would see more traditional commercial bank lenders scaling back some of their activities in the project finance and trade finance markets. “These regulations will make investments in regions such as Africa more expensive and capital intensive, and this is why we have to find new avenues to crowd-in non-traditional sources of funding, ” Tshabalala said.
Describing Room2Run as the “crown jewel of our impact activity, Andrew Hohns, Lead Portfolio Manager of the IIFC Strategy, Mariner Investment Group, said that there is a common misconception about the performance of MDB’s loans as unattractive; but the risk perceptions were often unbalanced”, he said.
“These assets have performer pretty well,” Hohns, said, giving reasons for Mariner’s global involvement with impact financing – nearly US$14 billion of infrastructure assets covering 1,250 projects world-wide. Hohns said the investor’s decision to partner with the Bank rested on its strong track record. The Bank is by far the most positioned of institutions on the continent to offer this kind of securitization, he said and synthetic securitization deals such as Room2Run were a “strong market fit.”
“The level of interest in taking exposure to the assets within the MDB’s is high,” Hohns said.
Kay Parplies, Head of Unit Investment & Innovative Financing, European Commission, said Room2Run was “catalytic” and hoped its involvement would attract other private investors and rating agencies to refine their approaches to African assets. Parplies said our experience over two decades had shown many in the investor community that actual risks (in African investments) were often lower than the perceived risks.
Other presenters at the workshop included Juan-Carlos Martorell Co-Head of Structured Products Solutions, Mizuho International and Nicole Giles Director General, International Finance and Development, Finance Canada.
Room2Run Roadmap to be shared with MDB’s
Turner said the Bank would soon publish a detailed journey of the Room2Run initiative, including all the documentation involved in its set up, to encourage other MDB’s to consider adopting synthetic securitization models to free up capital and create new pathways for institutional investors to support development. The document would be a “technical manual” to help others lower the cost and shorten the time to develop similar transactions.
“There is no need for our development partners to redo what we did. This is a knowledge sharing session of learnings from the school of hard knocks,” Turner said.
By creating new pathways between those with savings and those needing capital for development projects, Room 2Run would generate excitement within investment spaces normally far removed from development financing.
“Imagine a pensioner in Toronto knowing that his retirement investments are financing a power plant that was giving electricity to a family in Yopougon (Cote d’Ivoire). It’s a win-win.”, Turner said.
Structured as an impact investment, Room2Run is designed to enable the African Development Bank to increase lending in support of its mission to spur sustainable economic development and social progress.
Synthetic securitization and other similar models are intended to bring together public and private capital to finance development.
“MDB’s need to look at more than the financial return,” Bank Director of Syndication & Co-Financing, African Development Olivier Weck said, adding that the Bank had itself invested time to educate its board about the deal. “We needed to demonstrate additionality and the development outcome,” Eweck said.
Room2Run, positions the Bank as an innovative leader in providing lending in pursuit of the global development agenda, which prioritizes its own High 5’s and the Sustainable Development Goals. Freed-up capital will be directed toward renewable energy projects in Sub-Saharan Africa, including projects in low income and fragile countries.
“The Bank is treating this (Room2Run) as a pilot project,” Hohns said. “Mariner is very much interested in doing more.”
NDIC PRESS RELEASE NDIC Assists Uganda Deposit Protection Fund
The Nigeria Deposit Insurance Corporation (NDIC) is assisting the Uganda Deposit Protection Fund (DPFU) to develop capacity to implement the Deposit Insurance System (DIS) in the East African country. The Corporation recently hosted a five-member delegation from DPFU who arrived the country to understudy the activities of the Corporation. The NDIC has been the destination of choice for several sister agencies and Central Banks from across the African continent eager to understudy the activities of the Corporation and learn from its rich experience in Deposit Insurance – a subject on which it is recognized as a leader in Africa.
The Ugandan team was only the latest delegation from several Africa countries to visit the Corporation for capacity building. The NDIC previously hosted delegations from the Reserve Bank of Malawi, Reserve Bank of Lesotho, Deposit Protection Fund Board of Kenya, Deposit Insurance Board of Tanzania, Commission Bancaire del’Afrique Centrale (COBAC) of Cameroun, Delegates from Banque Centrale Des Etats De L’ Afrique De L’ Ouest (BCEAO) in Senegal all of whom the NDIC assisted build the capacity for the implementation of the Deposit Insurance System (DIS) in their various jurisdictions.
Others include teams from the Central Bank of The Gambia, Bank of Tanzania, the Deposit Protection Corporation of Zimbabwe, and the Ghana Deposit Protection Corporation (GDPC). In September, 2018, the NDIC will also host the African Regional Conference of the International Association of Deposit Insurers (IADI).
Mohammed Kudu Ibrahim
Head, Communications And Public Affairs
Tuesday July 3, 2018
NDIC’s Continued Quest For Excellence
By The Communications & Public Affairs Unit, NDIC
Successful accomplishment of unique goals is often attended by a sense of pride, fulfillment and excitement. The sense of fulfillment is greater when such feats set the pace for others to follow. The Nigeria Deposit Insurance Corporation (NDIC) recently became the first public sector organization in Nigeria to achieve three International Standards Organization (ISO) certifications by the British Standards Institute (BSI) at once. The certifications are in Information Security Management System – ISO/IEC 27001:2013; IT Service Management System – ISO/IEC 20000-1: 2011 and Business Continuity Management System, ISO 22301: 2012. The ISO certification is an international standard that helps organizations achieve excellence and through the adoption of best practices in attaining their goals.
The Corporation achieved the certifications after the rigorous processes of satisfying the conditions which preceded its accreditation in July, 2017. NDIC deployed sound corporate governance, professionalism and dedication of its top Management and staff to achieve the feat, after the thorough audit of its internal processes and procedures all of which met the lofty criteria set by the BSI.
The certifications were formally presented to the Corporation at an impressive ceremony in Abuja on 21st May, 2018 by the representative of the British High Commissioner, Ms. Natasha Anjekwu who described the achievement as a remarkable feat by the NDIC. She added that the fulfilment of the stringent requirements for the certification bore eloquent testimony to the Corporation’s resolve and adherence to international best practices in all its operations.
While receiving the award, the NDIC Managing Director/CE, Mr. Umaru Ibrahim, expressed delight at NDIC becoming the first public institution in Nigeria to be certified with three standards at once. Speaking further, the NDIC Boss reiterated that the objectives of the certifications was to ensure that the Cooperation adopted international best practices in its operations to be able to achieve its vision of being “the best deposit insurer in the world by 2020”. He further stated that the impressive performance resulted from the unflinching desire and commitment of the entire Management and staff of the Corporation. The ultimate goal, he concluded, is to enhance the operational readiness of the Corporation towards the robust implementation of its mandates to Nigerians through the continuous improvement of its service delivery platforms for greater information security, efficient IT Management and a robust Business Continuity System.
Mr. Ibrahim further stressed that the Corporation had no intention on resting on its oars, adding that it had invested massively in capacity building by training 53 members of staff on the three standards and also established a world class Training Academy, along with the adopting of a Continuous Performance Management System to track and measure performance. He therefore assured of the Corporation’s desire to take the lead in addressing the challenges of the financial services industry in Nigeria with a view to engendering professionalism and accountability.
The NDIC boss said that because the Corporation was a player in a globalized world where peer review was not only necessary, but inevitable, it was important for it to standardize its processes particularly for effective service delivery. In that respect, he added, the Business Continuity Management Framework adopted by the NDIC was intended to strengthen its capacity to deliver its four critical mandates of Deposit Guarantee, Bank Supervision, Distress Resolution and Bank liquidation.
Other dignitaries who attended the ceremony congratulated the Corporation on the achievement. In her remarks, the Minister of Finance, Mrs. Kemi Adeosun, who was represented by the Director of Home Affairs, Mrs. Olubunmi Siyanbola, charged the Corporation to see its success as a genuine effort towards attaining more positive heights.
The National Coordinator/Chief Executive Officer (CEO), SERVICOM Office in the Presidency, Mrs. Nnenna Akajameli extolled NDIC for the achievement and urged the Corporation to see the certifications as a road map to greater performance. She said that going forward, the SERVICOM Office would use NDIC as a model of an ideal service delivery public institution in Nigeria for others to emulate.
The Business Continuity Management System (BCMS) attained by the Corporation is a policy instrument aimed at positioning the Corporation’s staff as its most critical asset towards guaranteeing their safety and wellbeing on critical activities that support the achievement of its mandate and meeting the expectation of its stakeholders. It provides resilience against disruption and threats and ensures effective response and recovery capability in the event of any business disruption.
IT Services Management System (ITSMS), is a strategic approach for delivering, managing and improving the way information technology is used within an institution while the Information Security Management System, is intended to guarded against any disruption of the use of information especially electronic data.
NDIC was established in 1988 to protect depositors of failed or failing banks and to also promote financial system stability. The Corporation promotes safe and sound banking practices, contributes to orderly payment system and enhance fair competition to boost public confidence in the banking system. The Corporation currently provides Deposit Insurance coverage up to N500,000.00 maximum limit per depositor of Deposit Money Bank and Primary Mortgage Bank (DMB/PMB); and N200,000.00 per depositor of Microfinance Bank (MFB) in the event of failure of such institutions.
With the ISO certification, it is expected that the Corporation will continue to benchmark its operations with international best practices in order to consolidate on its achievements as it approaches the 2020 threshold to emerge the best deposit insurer in the world.
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