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With some out the box thinking, a structure was developed that enabled a funding flow to the programme as sustainable, regular and known quantum.

All credit to the Overseas Private Investment Corporation (OPIC), which at the time understood the need for innovation, confirmed a $250 million line of credit to a Special Purpose Vehicle, with the proceeds going to a Foundation. Thus was Housing for HIV Foundation, the precursor to Ngena, originally funded. 

So as to isolate OPIC from market risk, $50 million of Junior or Subordinated debt had to be raised in addition to their $250 million. JP Morgan, who were deeply involved in the asset selection, were able to place this debt with a number of organisations, on a purely commercial basis. Thus, in September 2004 we closed a $300 million 10-year bullet payment transaction that would see over $30 million flow to the programme over its life-span. Regular six-monthly interest flows saw full service on the debt; this despite the securities being Collateralised Debt Obligations whose underlying assets was Credit Default Swaps. Prudent credit underwriting criteria from the outset meant that despite the financial turmoil of 2007/2008, service was never interrupted. In July 2013, 15 months before planned maturity, conditions and prices allowed for an early redemption of the securities, at no cost to either the programme or the lender, and with the lenders concurrence the transaction was redeemed early, at full value to all.

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