Case Study 18

An OECD 7 rated country in Africa was in urgent need of 200 buses to revamp its Transport System. The demands on the Sovereign’s resources were far too many, with limited finances being apportioned for even more critical needs – a perennial struggle in every developing economy! The Sovereign sought the help of private companies through competitive bidding, and the contract was awarded to one with a good track record – a company that had often partnered with the Sovereign in its efforts to build the economy.

Financing challenges were many. The risk appetite of traditional funders was low, which implied that funding, if any, would come at exorbitant costs! Blend stepped in with its expertise in credit enhancement and strategic financial structuring. An Insurance-backed Credit Guarantee was organised, thanks to Blend’s global insurance associates. Additionally, Blend was instrumental in bringing in a much needed strategic investor, through its enduring funding network. With credit enhancement successfully in place, Blend structured a highly competitive funding solution from a Pan African Bank, enabling financial closure that benefitted all stake-holders.

Blend’s expertise helped The Ministry of Transport to swiftly mobilise its roll out of the first 100 buses, with another 100 scheduled to hit the roads later this year as per the Government’s deployment schedule – easing the transport woes of millions of less privileged citizens.

A difficult deal materialised thanks to Blend’s unique structuring capabilities, global network partners, immense experience in credit enhancement, and expertise in crafting bespoke financial solutions even in struggling economies. Blend continues positively impacting lives by actively pursuing similar projects worth USD 500 Mn in OECD 7 rated countries – despite their many financing adversities.

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