International law firm Simmons & Simmons has advised the Abu Dhabi Investment Authority (ADIA) on a repurchase agreement (repo) transaction between the Liquidity and Sustainability Facility (LSF), ADIA and the African Export-Import Bank (Afreximbank).
Unveiled at COP28 and arranged within BNY Mellon’s Triparty Facility, with a separate Simmons team advising BNY Mellon on its role as custodian and collateral manager for the LSF, the $100m transaction aims to increase the liquidity of African Sovereign Eurobonds and encourage investment in Africa under the Sustainable Development Goals (SDG), such as green bonds – which raise funds for climate and environmental projects.
Supported by the United Nations Economic Commission for Africa (ECA) and Afreximbank, the LSF seeks to bring the benefits of a well-developed repo market to the African continent, with the goal of enhancing the liquidity of a diversified basket of Sovereign Eurobonds across 18 issuers.
ADIA’s investment supports the LSF’s objective to address the gap in market participation for financing Africa’s international sovereign debt, indirectly helping to promote a more stable repo market in Africa. The LSF specialises in green and SDG-linked issuances.
The Simmons & Simmons team which advised ADIA on the transaction was led by financial services partner Craig Bisson (London), with support from Derek Lawlor (Dublin) and James Bresslaw (London). The lead associate on the transaction was Victoria Sinkha (London).
The Simmons team advising BNY Mellon Collateral Management was led by Marcin Perzanowski (London). The transaction marks the second time Simmons has acted for BNY Mellon under the LSF.
Craig Bisson commented: “We’re delighted that our experienced team had the privilege to work with ADIA on this important transaction which goes towards supporting the Sustainable Development Goals in Africa”.
