Benin secures 507 million euro loan for liability management

NAIROBI, April 7 (Reuters) - Benin has clinched a 507.5 million euro ($555.5 million) loan arranged by Deutsche Bank and guaranteed by the World Bank and an African trade insurer, the deal parties said on Monday, to help manage upcoming maturities through bond buybacks.

The new loan for the West African nation, which is rated B1 by Moody's, comes with a 200 million euro partial risk guarantee from the World Bank's International Development Association window, the parties in the deal said in a statement.

It also comes with an insurance of 614 million euros from the African Trade and Investment Development Insurance (ATIDI), covering the principal and interest amount over the 15 year tenure of the loan.

"The facility will provide fiscal space for Benin to reprofile its debt, ensuring long-term financial sustainability," the parties said in a statement.

Benin issued a $500 million Eurobond in January, joining other African nations like Kenya, who have issued international debt this year to manage its maturities and create much needed fiscal space for critical areas like health and education.

($1 = 0.9137 euros)