A syndicate of European Development Finance Institutions (EDFIs) led by Proparco, and including Norfund, DEG, FMO and EFP, has announced a $200 million Sustainability-Linked Loan to support Ecobank Group’s Sustainability and Climate strategy.
This was contained in ETI’s notice to the Nigerian Exchange Limited obtained by TheWitness.
According to the statement signed by Ayo Adepoju, Chief Financial Officer ETI, this is a significant milestone as it is the first-ever sustainability-linked loan to a sub-Saharan African financial institution.
The facility is linked to two major climate commitments including Climate Disclosures and the definition of a Climate Strategy. The facility also includes a Climate Action Plan.
Proparco, in partnership with the German consulting firm IPC, will provide long-term advisory support to Ecobank Transnational Incorporated’s teams to achieve these ambitious targets.
Ecobank Transnational Incorporated (ETI) is the Lomé based parent company of the Ecobank Group, which oversees 33 banking subsidiaries across the African continent.
ETI is a key actor in the sub-Saharan African banking sector, with product offerings for SMEs and delivery of market-leading financial services even in fragile economies.
Group The statement noted that over the years, Proparco and Ecobank Group have continuously reinforced their partnership through Proparco’s provision of numerous loans, bond subscriptions and risk-sharing facilities including for trade finance to ETI and its subsidiaries, aimed at providing access to finance for underserved segments.
According to ETI, as part of its ambition to increasingly integrate sustainability into its operations and financing strategy, ETI is making ambitious commitments to address sustainability challenges experienced by the organisation and common in the financial industry.
ETI has therefore committed to developing:
ETI noted that this financing has been supported by numerous European DFIs, which demonstrates the confidence of ETI’s banking partners in the pan-African banking group. Proparco acted as lead arranger and lender followed by Norfund, DEG, FMO and European Financing Partners.
This transaction highlights the quality of ETI’s leadership in the African banking sector and how it is paving the way for others.
This collaboration empowers Ecobank to implement sustainable objectives and generate significant impact. Jeremy Awori, Chief Executive Officer of the Ecobank Group, commented:
