COP28: Ecobank signs its SLL for US$200m with a Syndicate of EDFIs led by Proparco
A US$200 million Sustainability-Linked Loan has been launched by a syndicate of European Development Finance Institutions (EDFIs), chaired by Proparco and comprising Norfund, DEG, FMO, and EFP, to support the Sustainability and Climate strategy of Ecobank Group.
Since this is the first sustainability-linked loan to a financial institution in sub-Saharan Africa, it represents a significant milestone. The establishment of a climate strategy and the release of Climate Disclosures are two significant climate commitments that are connected to the facility.
A Climate Action Plan is also included in the facility. The teams at Ecobank Transnational Incorporated will receive long-term advising support from Proparco in collaboration with the German consulting firm IPC to help them meet these challenging goals.
The parent organization of the Ecobank Group, which is in charge of 33 banking subsidiaries throughout Africa, is Ecobank Transnational Incorporated (ETI), with its headquarters located in Lomé. ETI is a major player in the banking industry in sub-Saharan Africa, providing market-leading financial services and a wide range of products for SMEs, even in unstable economic environments.
Proparco has consistently strengthened its relationship with the Ecobank Group over the years by offering a variety of loans, bond subscriptions, and risk-sharing programs, including trade finance to ETI and its affiliates, with the goal of granting underprivileged groups access to capital.
“Proparco is proud to support a long-standing partner in integrating the climate agenda as a cornerstone of its strategy and operations. ETI is paving the way for the entire African financial industry. This first ever Sustainability-linked loan to a banking group in sub-Saharan Africa is a flagship” said Françoise LOMBARD, Chief Executive Officer of Proparco.
”Norfund is proud to once again support ETI – one of the leading pan-African financial institutions – in its important role of providing essential financial services across the Continent” said Tellef Thorleifsson Chief Executive Officer of Norfund.
“DEG is delighted to continue this important partnership with ETI as a leading pan-African banking group. We look forward to ETI becoming an important catalyst for climate action across the continent by means of this facility that is also perfectly aligned with DEG’s Impact and Climate strategy” commented Michael FISCHER, DEG’s Director Financial Institutions Africa.
“ETI has been a client of FMO for more than a decade and is considered a long-standing partner. We are very happy to follow Proparco in this Friendship Facility, focused on the Climate Strategy of the Group, reflecting ETI’s pro-active ambition on this front. FMO’s funds will be geared towards Least Developed Countries, making a difference there where it is needed the most,’’ said Michael Jongeneel, CEO of FMO.
“No financial institution can afford to ignore the opportunities and challenges that a changing climate presents. Today, ETI and Proparco break new ground for climate action in Africa,” added Dörte Weidig, Managing Partner at IPC
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