Avis d’appel d’offre pour le recrutement d’un consultant pour accompagner dans la conception de base et la structuration de l’Afrique, Abidjan, Cote d’Ivoire

AFRICAN DEVELOPMENT BANK GROUP

Financial Sector Development Department (PIFD)

Letter of Invitation

Consultant to support in the baseline design and structuring of the Africa

Corporate Bond Program (ACBP)

1. We have the pleasure to inform you that the Capital Markets Development Division (PIFD.2) of the Financial Sector Development Department (PIFD) of the African Development Bank will require the services a Consultant to assist in the baseline design and structuring of the Africa Corporate Bond Program (ACBP) ;

2. Under the supervision and guidance of the Capital Markets Development Division Manager, the Consultant will undertake a full range of duties related to the assessment of African corporate debt market development needs, including but not limited to, market scoping, finalization of the program’s conceptualization, baseline design, structuring, and pipeline development as well as review and propose recommendation on institutional considerations in support of operationalization of the proposed program ;

3. The proposed ACBP aims at addressing failures and challenges hindering growth and effectiveness of African capital markets, specifically non-sovereign bond markets. The ACBP envisaged components will include, but not limited to, (i) Investment; and (ii) Technical Assistance. The investment component aims at making demonstrative and impactful investments, using both existing funded and unfunded instruments of the Bank, in select primary non-sovereign bond issuances whereas the technical assistance component will aim at supporting capacity-building activities in the non-sovereign bond markets, particularly during the pilot phase. The proposed baseline design and structuring will be essential for the initial phase (hereafter, pilot phase) of the ACBP ;

4. You are requested to submit an updated Curriculum vitae (CV) and your financial proposals in writing by 14:00 Hrs. Abidjan time, on 15^th January 2021 by return email or to the address indicated in paragraph 12 ;

5. The expected duration of the assignment is five (5) months ;

6. You will find in Section I, the Terms of Reference (TOR) showing the scope of the assignment to be conducted and the Services requested from the short-listed Consultants. You are expected to provide a comment on the TOR of the assignment (no more than 2 pages), state your relevant experience and an updated Curriculum Vitae. In addition please present your financial proposal regarding the monthly lump-sum fee ;

7. The proposal to be submitted by the short-listed Consultants will be evaluated on the basis of the following criteria :

• general qualification and suitability for the task to be performed 20 points ;
• experience in the specific assignment described in the Terms of Reference  55 points

8. A shortlist will be established at the end the request of expressions of interest. Only the proposals scoring 70 points or above shall be considered for this assignment. All the consultants shall be ranked and the highest ranked consultant will be selected for the said assignment if his/her fees are within budget limits ;

9. The Consultant shall meet the cost of any insurance and medical examination or treatment required by him/her in the course of performing the Services ;

10. The Consultant shall seek and obtain any visas or resident permits that he/she may require to carry out the Services and perform his/her obligations under the present Contract. The Bank shall, as necessary, assist the Consultant in obtaining such visas and/or permits ;

11. If you decide to submit a proposal, it must be received at the place designated for receipt of proposals not later than the closing date indicated in paragraph 4 ;

12. Your proposal should be submitted to the following address :

13. The ADB would like to thank you in advance for your consideration of this request and we look forward to receiving your proposal.

Yours faithfully,

Mr. Stefan Nalletamby

Director,

Financial Sector Development Department (PIFD)

SECTION – I : TERMS OF REFERENCE (TOR)

Consultant to support in the baseline design and structuring of the Africa

Corporate Bond Program (ACBP)

1. INTRODUCTION :

The Capital Markets Development Division (PIFD.2) of the Financial Sector Development Department (PIFD) of the African Development Bank will require the Services of a consultant (hereinafter “the Consultant) to support in the design and structuring of the pilot phase of the Africa Corporate Bond Program (ACBP). The proposed assignment is for an estimated period of 5 months.

2. BACKGROUND  :

Most of Africa’s local currency corporate bond markets continue to struggle to gain traction and depth with very few participants, products and low activity due to few issuers, instruments and investors. Except in a few local capital markets, corporate bond issues remain severely constrained in terms of new issuances, volume, tenor and secondary trading. The inability by local capital markets to adequately or effectively intermediate, allowing corporates to access large pools of savings in Africa is a critical market failure, which requires to be further interrogated and addressed in a systematic and holistic manner.

The corporate bond markets are, in several African countries still in their infancy and require various interventions and approaches to nurture, promote and develop. While banks tend to be more adept at providing short-term capital matched to their financing mode of largely customer deposits, established bond markets generally enjoy a comparative advantage in being a source of long-term capital, well suited for the financing of long-term investment needs of growing businesses as well as infrastructure projects through the intermediation of long term savings. Without adequate access to alternative sources of finance, including from functioning bond markets, many African companies continue to find it difficult to finance critical growth needs.

3. OBJECTIVES :

Under the supervision and guidance of the Capital Markets Development Division Manager, the Consultant will undertake a full range of duties related to the assessment of African corporate debt market development needs, including but not limited to, market scoping, finalization of the program’s conceptualization, baseline design and structuring, and pipeline development as well as review and propose recommendation on institutional considerations in support of operationalization of the pilot phase of the proposed corporate bond program.

The proposed ACBP aims at addressing failures and challenges hindering growth and effectiveness of African capital markets, specifically non-sovereign bond markets. The ACBP envisaged components include, but not limited to, (i) Investment; and (ii) Technical Assistance. The investment component aims at making demonstrative and impactful investments, using both existing funded and unfunded instruments of the Bank, in select primary non-sovereign bond issuances whereas the technical assistance aims at supporting capacity-building activities in the non-sovereign bond markets during the pilot phase.

4. TASKS TO BE PERFORMED :

The deliverable under the Assignment includes but not limited to the following :

1. Prepare a corporate debt market assessment, including a diagnostic study identifying the market needs, the focus areas for the proposed technical assistance component; key issues for consideration by the Bank (including recommendations on available options) in the role of the Bank as an investor or guarantor; and recommendation on the overall design of the Program. The assignment will also involve identification of priority markets for the study that shall include, but not limited to, Morocco, Tunisia, WAEMU, Nigeria, Kenya, Egypt, South Africa and Cameroun.

1. Develop detailed recommendation on approach for fiduciary and safeguards for the ACPB taking into account the Bank’s requirements in consultation with the relevant Bank departments ;
2. Undertaken a detailed benchmarking of ACPB with initiatives, programs and practices of other development institutions, private sector and general best practice for non-sovereign bond market development; make recommendations on possible collaboration with international and regional bodies promoting capital markets development and best practices ;
3. Prepare a detailed market mapping, design and an indicative pipeline of transactions for the pilot phase of the Program leveraging on the findings of the study for management clearance; revise and upgrade the Program concept note into a full Proposal for the ACPB; and
4. Develop an initial indicative Business Plan for the program as an annex to the full Proposal ;
5. Recommend and assist in providing required internal capacity building needs for a successful operationalization of ACBP.

This assignment is NOT limited to the above listed responsibilities, and the consultant may be requested to perform other relevant duties as required by business needs.

5. SCHEDULE OF ACTIVITIES/TASKS :

The proposed assignment is for an estimated period of Five (5) months starting from the date of signature of the contract, and is expected to be conducted remotely.

6. CONSULTANT PROFILE :

Professional and Academic Skills Requirement :

• Advanced degree in financial engineering, economics, business administration, finance or any other relevant areas ;
• At least 10 years of experience in finance with a proven track record of sourcing, structuring and closing sound capital markets (especially debt capital markets) related transactions, initiatives or programs ;
• Ability to engage in a broad range of financial policy issues including: a) Financial sector policy and regulation, b) Banking, c) Capital markets, d) Insurance, e) Investments/equity funds, f) financial aspects of PPPs, g) SME finance, and h) trade finance ;
• A successful track record in structuring leveraged finance, project finance, leasing finance, securitization and/or tax effective structured transactions would be highly desirable ;
• Desired areas of expertise include deep capital markets experience, structured finance, corporate banking, trade and export finance, leverage finance, project finance, loan syndication, securitization, debt capital markets, counterparty credit evaluation, corporate and institutional lending, loan portfolio management, leasing finance ;
• Knowledge of overall capital markets trends in Africa, experience in emerging markets; and outstanding understanding of financial markets and transaction structuring related issues in RMCs ;
• A knowledge and familiarity with RMCs would be highly desirable ;
• A command of financial markets instruments and structuring. With strong financial and credit skill; demonstrated ability to structure a variety of complex financial instruments (debt, quasi equity and equity) ;
• Strong interpersonal skills and ability to interact directly and independently with senior management of potential clients, financial and technical partners, and government officials, and colleagues from various cultural backgrounds ;
• Strong communication skills, integrity and teamwork attitude ;
• Command in the use of standard computer software ;
• Excellent communication skills both oral and report writing ability in both English and French is highly desirable.

7. CONSULTANCY SERVICES CONTRACT :

A consultancy service contract will be signed with the Bank.