Credit Enhancement for Bond Issuance to Enhance Affordable Mortgages in West Africa

Sub-Saharan Africa
CrossBoundary Advisory
Financial Services
Market: Benin, Burkina Faso, Cote d’Ivoire, Guinea, Mali, Senegal, Togo
Unlocking dual-currency bond issuance for affordable mortgages across the West Africa region
Deal structuring
Due diligence
Market research/analysis

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.

Read the press release on the Prosper Africa website.


CrossBoundary Advisory took a comprehensive approach to meet the multifaceted needs of this transaction:
Transaction Structuring: The team worked closely with CRRH, co-advisors and the DFC to structure the transaction in a way that effectively managed credit, FX and interest rate risks, a critical component given the dual-currency nature of the bond issuance.
Underwriting Due Diligence: Conducted rigorous underwriting due diligence on both the issuer (CRRH) and approximately 30 member banks. This was crucial for the guarantor to understand the eligibility for drawing down proceeds for mortgage on-lending.
Risk Assessment: Recommended concentration limits for mortgage lending by assessing the health and potential of the 55 shareholder banks, which will subsequently make these resources available to end borrowers across WAEMU.
Given the significant demand for housing loans in WAEMU, this engagement by CrossBoundary Advisory serves as a pivotal step toward increasing financial inclusion and meeting housing needs in West Africa.


The proceeds of the debt raise are expected to make more affordable mortgages available to ~6,000 end borrowers across the West African Economic and Monetary Union region

CRRH secured a 17-year $217 million equivalent Eurobond that was issued via a U.S. trust alongside a local currency bond equivalent to $57 million for a total raise of $274 million from international and local institutional investors

The Eurobond issuance was structured with 100% protection and an indemnity guarantee from the DFC that effectively substituted underlying credit risk with US agency risk