About the Client
Caisse Regionale de Refinancement Hypothecaire (“CRRH”) was initiated in 2005 by the Central Bank of West African States, the West African Development Bank, and the Regional Council of Public Savings and Financial Markets to provide long-term liquidity for housing by raising resources from capital markets and donor partners to refinance mortgage loans made by banks across the 8 markets of the West African Monetary Union (WAEMU).
To meet the high demand for housing loans in the zone, CRRH finances the housing loan portfolios issued by its 55 shareholder banks by raising long-term resources on the regional bond market and from development finance institutions to target and reach the low and middle-income classes.
CrossBoundary Advisory was engaged to co-advise CRRH (Caisse Regionale de Refinancement Hypothecaire) and the DFC (Development Finance Corporation) on a credit enhancement strategy to support a $274 million dual-currency bond issuance. The engagement was aimed at not only managing financial risks but also conducting underwriting due diligence on behalf of the guarantor. The focus was on structuring the transaction to manage credit, foreign exchange and interest rate risks effectively, while also setting guidelines for mortgage on-lending and concentration risks.
MiDA Advisors served as the originator and lead transaction advisor on this landmark transaction.