Recruitment for a Consulting Firm for the Design of a Credit Scoring Model And Pricing... Tender

Procurement Summary

Country : Cote d'Ivoire

Summary : Recruitment for a Consulting Firm for the Design of a Credit Scoring Model And Pricing Framework for Guarantees

Deadline : 15 Sep 2018

Other Information

Notice Type : Tender

TOT Ref.No.: 25749927

Document Ref. No. :

Competition : ICB

Financier : African Development Bank (AfDB)

Purchaser Ownership : -

Tender Value : Refer Document

Purchaser's Detail

Purchaser : BANQUE AFRICAINE DE DEVELOPPEMENT
Avenue Jean-Paul II 01 BP 1387, Abidjan 01, p.angoua@afdb.org/n.lafhel@afdb.org
Cote d'Ivoire
Email :p.angoua@afdb.org/n.lafhel@afdb.org

Tender Details

Expression of Interest are invited for Recruitment for a Consulting Firm for the Design of a Credit Scoring Model And Pricing Framework for Guarantees.

In August 2015, the UN members approved the Addis Ababa Action Agenda to eradicate
extreme poverty and achieve world-wide sustainable development by 2030. The Agenda has
17 ambitious Sustainable Development Goals (SDG), that will require increased financing
moving from billions of dollars in Official Development Assistance (ODA) to trillions of dollars
of investment in all kinds, including the mobilization of additional resources from the private
sector.
Following the adoption in 2013 of its Ten Year Strategy (TYS) with the overarching twin
objectives of inclusive growth and the transition to green growth, and in line with of the UN’s
SDG, the African Development Bank (AfDB) is set on scaling up its investment commitment to
Africa. And, in its 2015 TYS revision (“Scaling Up Implementation of The Ten-Year Strategy -
The High 5s Agenda), the Bank focused on five priority areas namely: (1) Light-up and Power
Africa, (2) Feed Africa, (3) Industrialize Africa, (4) Integrate Africa and (5) Improve the quality
of life for the African People.
Guarantee products were identified as one of the core financial instruments that the Bank
would employ, in order to leverage its own resources and help in attracting additional
resources from the private sector for the financing of socioeconomic development of its
Regional Member Countries (RMCs).
It is within this context that the Bank has undertaken to review and improve its guarantee
framework with the objective to mainstream the use of guarantee instruments across the
organization operations.

The Scope of Work and Expected Deliverables:
The objective of the assignment is for the Bank to reassess with a view of revising the
underlying methodology applied for risk rating and the pricing of its various guarantee
products for transactions of non-sovereign operations. The consulting firm will undertake a
review of the existing practice within the Bank, complete a detailed benchmarking exercise
(external and internal consultations), and is expected to produce a detailed report of their
2
recommendations. The report will include the rationale for the proposed conceptualization
and development of a dedicated credit-scoring model and pricing framework for guarantees.
It is envisaged that the recommendations for the revised scoring and pricing models for nonsovereign
guarantees should:
• Incorporate a Composite Rating approach in the credit scoring model (taking into
account, as appropriate, risk assessments of the Counterparty, underlying
Borrower/Sectors, Transaction type, and Country Risks) ;
• Provide optimal granularity for the tenors of the guarantee transactions in the pricing
framework.

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