AfDB Partners With Societe Generale to Launch Synthetic Securitization Platform

The SST Platform marks the next chapter in the AfDB’s innovative Room to Run (R2R) initiative, which has executed three successful significant risk-transfer (SRT) transactions since 2018.

The African Development Bank Group (AfDB) has taken a major step toward reshaping Africa’s development-finance architecture with the appointment of Societe Generale as Lead Advisor for its newly established Multi-Originator Synthetic Securitization Platform (SST Platform). The agreement, signed on 26 November during the 2025 Africa Investment Forum Market Days in Rabat, signals the beginning of a transformative financial mechanism designed to unlock lending capacity, mobilize private capital, and strengthen the balance sheets of African development institutions.

A New Phase Building on the Room to Run Legacy

The SST Platform marks the next chapter in the AfDB’s innovative Room to Run (R2R) initiative, which has executed three successful significant risk-transfer (SRT) transactions since 2018. Those earlier transactions—widely regarded as groundbreaking within multilateral finance—freed up regulatory capital and enabled the AfDB to expand its financing of high-impact projects across Africa.

The new SST Platform will operate as a revolving, evergreen, scalable vehicle, allowing multiple originators to transfer credit risk from their portfolios while retaining lending capacity. This structure aims to create predictable, long-term efficiency for development finance institutions (DFIs), many of which face rising capital-adequacy pressures amid expanding infrastructure, climate, and social development needs.

A Strategic Partnership Backed by Global Expertise

Societe Generale, recognized globally for its leadership in SRT and structured-finance advisory, will spearhead the design and structuring of the platform. Its role will include:

• Developing the SST Platform’s financial and operational architecture

• Supporting investor outreach through detailed modeling and analytics

• Advising on regulatory alignment and best-practice documentation

• Assisting with the creation of harmonized credit-assessment frameworks

Pascale Olivié, Senior Advisor, Asset-Backed Solutions at Societe Generale, described the partnership as a milestone in advancing sustainable and scalable financing:

“Societe Generale is pleased to leverage its in-depth expertise in risk-transfer solutions to advise the African Development Bank, DBSA and other development institutions in establishing a groundbreaking multi-originator synthetic securitization platform. This marks a significant milestone in advancing sustainable finance and attracting private investment for inclusive growth across Africa.”

A USD 2 Billion Initial Reference Portfolio

The first phase of the SST Platform will house a $2 billion reference portfolio, combining assets from:

• The African Development Bank

• Development Bank of Southern Africa (DBSA)

• Other regional and international DFIs, pending participation

The portfolio will cut across multiple sectors, reflect diverse geographic exposure, and include varied risk profiles—a structure designed to attract private investors who seek diversification, transparency and risk-mitigated opportunities.

Over time, the platform is expected to introduce:

• Standardized issuance documentation

• Unified credit assessment methodologies

• Shared Special Purpose Vehicle (SPV) structures

Such harmonization is poised to enhance efficiency, reduce transaction costs, and expand participation to a broader range of African and global DFIs.

Unlocking Lending Capacity for High-Impact Projects

During the signing event, Max Ndiaye, AfDB’s Senior Director for Syndications, Client Solutions and the Africa Investment Forum, emphasized the platform’s catalytic potential:

“The SST Platform is expected to be a catalyst for expanding lending headroom for high-impact projects, positioning it as a cornerstone in Africa’s efforts to scale financing solutions that drive sustainable growth across the continent.”

By transferring mezzanine and senior-risk exposures to private investors, DFIs can redeploy capital into new priorities such as:

• Renewable energy and climate resilience

• Transport and logistics infrastructure

• Water security and sanitation

• Agriculture and food-system transformation

• Digital connectivity and regional integration

This expanded capacity is essential as Africa faces rising demographic pressures, climate vulnerabilities, and persistent infrastructure gaps.

Alignment With AfDB’s Long-Term Strategy

The initiative supports the African Development Bank Group’s Ten-Year Strategy, which prioritizes sustainable growth, private-sector development, and capital optimization. It is also aligned with President Sidi Ould Tah’s Four Cardinal Points, which emphasize accelerating private-capital mobilization at a continental scale.

As multilateral institutions increasingly adopt innovative balance-sheet optimization tools, the SST Platform positions Africa at the forefront of global development-finance reform.

Toward a New Model of Development Finance for Africa

By connecting structured finance with development needs, the SST Platform is expected to redefine how African projects are financed. Its multi-originator structure enables collaboration among DFIs, lowers barriers to entry for private institutional investors, and sets the stage for a more liquid and transparent African credit-risk market.

The platform also serves as a test case for broader reforms within global development finance, including calls for:

• More efficient balance-sheet use by multilateral development banks

• Greater risk-sharing with private capital

• Scalable financial mechanisms for climate and infrastructure funding

As Africa confronts the twin challenges of rising demand and shrinking fiscal space, the SST Platform may become a centerpiece of the continent’s long-term financing architecture.