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With “Room2Run,” AfDB Launches Securitisation Market For Multilateral Development Bank Sector

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➢ WITH “ROOM2RUN,” AfDB LAUNCHES SECURITIZATION MARKET FOR MULTILATERAL
DEVELOPMENT BANK SECTOR
➢ TRANSACTION IS IN DIRECT RESPONSE TO G20 ACTION PLAN FOR MDB BALANCE SHEET OPTIMIZATION
➢ AfDB COMMITS TO REINVEST FREED UP CAPITAL INTO NEW AFRICAN INFRASTRUCTURE
LENDING, MAKING ROOM2RUN ONE OF THE LARGEST IMPACT INVESTMENTS EVER
➢ TRANSACTION IS SUPPORTED BY NEW EUROPEAN UNION GUARANTEE TOOL (EUROPEAN FUND FOR SUSTAINABLE DEVELOPMENT)

OTTAWA, Canada, 18 September 2018 — The African Development Bank (AfDB), the European Commission, Mariner Investment Group, LLC (Mariner), Africa50, and Mizuho International plc today announce the pricing of Room2Run, a US $1 billion synthetic securitization corresponding to a portfolio of seasoned pan-African credit risk. Room2Run is the first-ever portfolio synthetic securitization between a Multi-Lateral 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.

Structured as a synthetic securitization by Mizuho International, Room2Run transfers the mezzanine credit risk on a portfolio of approximately 50 loans from among the African Development Bank’s nonsovereign lending book, including power, transportation, financial sector, and manufacturing assets. The portfolio spans the African continent, with exposure to borrowers in North Africa, West Africa, Central Africa, East Africa, and Southern Africa. Mariner, the global alternative asset manager and a majority owned subsidiary of ORIX USA, is the lead investor in the transaction through its International Infrastructure Finance Company II fund (“IIFC II”). Africa50, the pan-African infrastructure investment platform, is investing alongside Mariner in the private sector tranche. Additional credit protection is being provided by the European Commission’s European Fund for Sustainable Development in the form of a senior mezzanine guarantee.

“Room2Run gives us fresh resources to invest in the projects Africans need most,” said Akinwumi Adesina, President of the African Development Bank Group. “Africa has the most promise, the greatest natural resources, and the world’s youngest population. But we also have the world’s most persistent infrastructure deficits. The African Development Bank has the strategy to address these infrastructure finance gaps—and Room2Run gives us the capacity to make it happen.”

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. In connection with Room2Run, AfDB has committed to redeploy the freed-up capital into renewable energy projects in Sub-Saharan Africa, including projects in low income and fragile countries.

“On the Impact scale, Room2Run is off the charts,” said Dr. Andrew Hohns, Lead Portfolio Manager and head of the Mariner Infrastructure Investment Management team. “Room2Run answers the call of the G20 for private sector participants to step in and facilitate development finance, providing a template for attracting significant private sector capital into urgently needed projects in developing economies.”

Raza Hasnani, Head of Infrastructure Investment at Africa50 commented, “Room2Run provides an innovative and commercially viable solution to the African Development Bank’s risk management and lending objectives, while paving the way for commercial investors to support and benefit from the growth of infrastructure on the continent. Africa50 is very pleased to participate in this landmark transaction, which is in line with our mandate to drive increased investment in infrastructure in Africa, and to create pathways for long-term institutional capital to flow into this space.”

Room2Run enjoys the support and participation of the European Commission with an investment from the European Fund for Sustainable Development, in the form of a senior mezzanine guarantee. “Only a few days after announcing our renewed Alliance with Africa for sustainable investments and jobs, I am very happy to announce that we are, together with the African Development Bank, launching Room2Run,” commented Neven Mimica, the European Commissioner for International Cooperation and Development. “This initiative is a perfect example of what we are doing to support investments in African low income and fragile countries through the External Investment Plan. Through Room2Run we provide
an additional protection to investments in the field of renewable energy. Through our Guarantee, investments under Room2Run will translate into extending supply to many people currently without electricity whilst creating much-needed new jobs.”

Room2Run also directly responds to calls by the G20 that MDBs use their existing resources to full capacity, as articulated in the 2015 G20 MDB Action Plan to Optimize Balance Sheets, as well as calls for greater MDB efforts to crowd-in private investment. The G20 has called on MDBs to share risk in their non-sovereign operations with private investors, including through structured finance, mezzanine financing, credit guarantee programs, and hedging structures.

The Government of Canada has been a global leader in advocating for MDBs to use their existing resources more efficiently and to mobilize private capital for global development. The goal of the G20 MDB Action Plan to Optimize Balance Sheets is to catalyze significant new development financing from the MDBs throughout the real economy in key development regions. “Attracting more private capital into global development efforts is critical to building economies that work for more and more people around the world,” said Bill Morneau, Canada’s Minister of Finance, “that’s why Canada and our G20 partners have been calling on multilateral development banks to use their existing resources as efficiently as possible, and to look for new ways to attract more private capital. We are pleased to see the African Development Bank come forward with a transaction that directly responds to both of these objectives. Room2Run is an innovative solution to a long-standing challenge.”

Juan Carlos Martorell, Co-Head of Structured Solutions at Mizuho International, adds, “Compared to other synthetic securitizations, a major achievement of Room2Run has been to ensure that ratings agencies, and in particular S&P, reflect the merits of the risk transfer into their rating assessments for multilateral development banks. AfDB’s leadership through this transaction has now set the stage for broader adoption of the instrument throughout the MDB community.”

Brand Voice

Transformation Through People

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Financial services company RCS, a Top Employer for 2019, is driving new ways of working and empowering employees to take ownership of their career development.

 

I am inspired in my ambition to run a successful business because it not only creates job opportunities that put individuals in positions where they are able to support themselves and achieve their dreams, but also their families’, says Regan Adams, CEO of RCS. RCS, a financial services company that was bought by BNP Paribas in 2014 is in the midst of an exciting business transformation. Adams believes that this transformation will be achieved by driving a new culture and new ways of working. It is exactly this belief that informs the HR strategy, which places employees at the heart of the business’ transformation, ensuring that they are equipped and empowered for this change. This strategy was created through a strong collaboration between the local HR team, the business, and support from the BNP Paribas Corporate HR team in Paris. With the solid blueprint in place and the wheels set in motion, the HR team embarked on the journey for RCS to become accredited as a Top Employer. Sandi Richardson, Deputy Head of HR explains that this accreditation is not only a prestigious accolade for RCS but will continue to elevate the HR team’s delivery through the benchmark reports and feedback provided by Top Employer. Richardson says that participation in the Top Employer certification process will deliver a sustained and strengthened performance, supporting the team’s mission to make RCS a great place to work.

Richardson says that this is an exciting time for the RCS team. The HR function have accelerated their own transformation with the introduction of a BNP Paribas sponsored, digital employee tool, called ‘About Me’. This tool is intended to empower employees to take ownership for their career development. ‘About Me’ puts the employee in the driving seat of their career by integrating the individual’s data around their career preferences and professional profiles. The use of algorithms then suggests learning and mobility offerings from both the Learning Management System and Recruitment tools. This tool also hosts the employee’s appraisal (including the functionality for continuous feedback) and personal development plan. The digital nature of the tools means that it promotes transparency, flexibility and accessibility in these fundamental topics.

RCS equips its leaders to lead differently by providing Leadership Development programmes that are not only focused on the technical aspects of transformation but the behaviours required of those entrusted to guide its teams. RCS employs many new entrants to the labour market, particular into its call centre. A host of development programmes are put in place to support the growth of these employees. Some of these initiatives include secondments across the business, an internal graduate programme and financial assistance to fund their tertiary education.

RCS further invests in the wellbeing of its employees by providing holistic, world class wellness facilities both onsite and offsite. These include clinics providing primary healthcare, gyms, fitness classes of varying natures to suit the diverse preferences of its employees and a host of initiatives throughout the year. RCS also invests in the education of the children of their qualifying staff, through its annual bursary programme.

This drive to empower extends beyond the borders of RCS as Adams explains that RCS strives to be an organisation that contributes to the building of South Africa’s nation. This is done through various contributions and the efforts of its employees in a number of organisations and projects that are focused on the upliftment of the communities within which RCS operates.

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Brand Voice

Continental Tyre’s Values Create Value

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For Continental Tyre, it is critical for its employees to know and understand how wealth is created and distributed.

 

By Genevieve Jozaffe-Naidoo, Training Management and Organisational Development (TMOD) Manager

 

Care is a verb at Continental Tyre South Africa, which is why the company has consistently been named a Top Employer in South Africa.

It is critical for all employees to know and understand how wealth is created and distributed within the organisation.

Equally, every employee needs to appreciate their individual contribution towards common goals. To this end, our leadership team has established line-of-sight for each employee.
Growth and profitability can only be achieved through shared purpose and values (Trust, Passion to Win, For One Another and Freedom to Act), coupled with employees’ talents, motivation and willingness to learn.

Our values unify how we engage and challenge our actions, results, successes and opportunities. Trust and transparency talk to just some of the lived values of our leadership team – sacrificing short-term gains for long-term growth. The leadership team have committed their time, efforts and minds being of service down the line to create “one Continental”.

Over the past few years, there has been significant investment in building our people capability. Hosting development programmes aimed at enhancing critical skills was just one of the interventions we undertook.

2018 has certainly challenged our business. This year – in the spirit of building capability – business sustainability and humanising the scoreboard has been our priority. Political and economic uncertainty, both locally and globally, has created added pressure to deliver affordable, quality products consistently. These challenges have brought us full circle to our values.

Our people have responded well to these challenging times. Dialogues and joint action planning define our culture, with various platforms accommodating multi-faceted conversations. We are motivated to change our lived experiences by creating alliance and value, striving always to be an attractive and progressive employer.

Participating in the Top Employer awards has been of tremendous use in raising our awareness on policy, process and practice. Additionally, it has added value to our brand. Continental Tyre South Africa’s 70-year presence in South Africa is evidence of our leadership and learning agility. Our organisation is fully geared toward shaping our future in motion.

OUR PEOPLE, OUR CULTURE, OUR FUTURE.

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Brand Voice

Making Work Rewarding For Generations To Come

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Sanlam’s approach to its employees is the same as its approach to its clients, to enable them to live their best possible life.

 – Content supplied by Sanlam 

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