THE SECURITISATION OF RECEIVABLES AND THE FCTC FS YAKAAR ALPHA FUND
INTRODUCTION TO FCTC FS YAKAAR
The ‘FCTC FS YAKAAR’ Securitisation Fund ’, acting exclusively on behalf of its sub-fund known as Alpha, is issuing bonds on the West African Monetary Union Regional Financial Market in the amount of 9,480,350,000 CFA francs, comprising 948,035 bonds with a face value of 10,000 CFA francs each.
The ‘FCTC FS YAKAAR COMPARTIMENT ALPHA’ operation has been authorised under reference number FCTC/2024-05 by the West African Monetary Union Financial Markets Authority (AMF-UMOA), and the funds raised are intended to help finance SMEs in the UMOA by refinancing the bank loan portfolio.
CHARACTERISTICS OF THE OPERATION
Issuer
FCTC FS YAKAAR acting exclusively on behalf of the sub-fund known as Alpha
Designation
FCTC FS YAKAAR ALPHA COMPARTMENT
Nominal value
10,000 CFA francs
Indicative amount
9 480 350 000 FCFA
Number of securities issued
948 035 obligations
Loan term
6 years
Annual interest rate
7,15%
Return of capital and payment of interest
is paid annually
Rating
AAA(WU)(SF)(IR) with a stable outlook (GCR West Africa)
Grantor
MANSA BANK
Guarantee and security arrangements
- Special allocation, for the benefit of the Sub-Fund, of the bank accounts opened in the name of the Receivables Manager and exclusively dedicated to the collection of the assigned receivables.
- Reserve Fund representing the credit balance of the Reserve Account, which must at all times exceed the largest upcoming instalment payable by the FCTC. Upon issuance, this fund amounts to FCFA 3,133,000,000, representing 125% of the largest instalment due in October 2025. These funds will be held in a trust account maintained on the books of MANSA BANK. The Reserve Fund shall be established no later than the date on which the Fund acquires the receivables.
- Additional receivables in the form of a reserve portfolio, the outstanding amount of which shall at all times represent at least 35% of the outstanding amount of the receivables.
BENEFITS AND ADVANTAGES OF THE TRANSACTION
The transaction aims to support the financing of Small and Medium-sized Enterprises (SMEs) in the sub-region, thereby contributing to local economic development. Indeed, by investing in the refinancing of bank loans to SMEs, investors play a key role in the economic development of the WAEMU (UEMOA) zone, thereby supporting Small and Medium-sized Enterprises.
The transaction also complies with all regulatory requirements, having obtained the necessary approvals issued by the Financial Markets Authority of the UEMOA (AMF-UMOA), thereby ensuring its compliance and transparency.
The bonds issued by FCTC FS YAKAAR COMPARTMENT ALPHA benefit from a high-quality rating of AAA (WU)(SF)(IR), with a stable outlook. This rating is supported by strong guarantees and collateral, thereby providing significant protection for investors.
The bonds offer an attractive annual yield of 7.15%, thereby ensuring a strong return on investment. Through annual interest payments and a constant amortisation of principal, they provide regular and predictable cash flows.
This investment product also represents an excellent opportunity for portfolio diversification in a growing market, while maintaining a controlled level of risk.
Investors also benefit from resale flexibility; the bonds may be transferred through licensed SGIs on the Regional Financial Market, thereby ensuring a certain degree of liquidity.