of financing that will help provide funds for African companies.

Funds destined for African development projects will be channeled through a special purpose trust vehicle set up in Bermuda by CD&P lawyer Mr. Donald Malcolm.

Purpose trusts are often used when parties to a transaction do not wish to, or cannot, own a company or include the company as a balance sheet asset.

The company at the core of this financing project, the Burundi-based Eastern and Southern Trade and Development Bank known as PTA Bank, is a development bank for eastern and southern Africa.

The bank has launched a $500 million asset-backed commercial paper programme, which will enables it to attract US investors.

A special purpose trust company owned by a Bermuda purpose trust has been created to acquire trade-related loans made by the PTA Bank in eastern and southern Africa.

It is the first African entity to tap the US asset-backed market, and the first rated financing structure of its kind.

The programme has received the highest short term credit rating from Standard & Poor's and Fitch Investors Service in what is regarded as something of a triumph.

The financing, which was the brainchild of New York law firm Milbank, Tweed, Hadley & McCloy, is structured to reduce the risks associated with investing in Africa.

Conyers, Dill & Pearman were called upon to set up a Bermuda company, called ADA Uhuru Ltd. -- Uhuru meaning freedom -- which is owned by the trust. The Bermuda corporation will provides cash directly to a collateral account to back the programme and guarantee the obligation.

"Versatility is the key achievement of this project. It shows that a Bermuda company and trust structure, normally used in aircraft leasing, can be expanded for other purposes.

"In this way, Bermuda is indirectly assisting African developing countries,'' said Mr. Malcolm.