A syndicate of European Development Finance Institutions (EDFIs) led by Proparco, and including Norfund, DEG, FMO and EFP, has announced a US$200 million Sustainability-Linked Loan to support Ecobank Group’s Sustainability and Climate strategy. 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 Africa banking sector, with significant product offerings for SMEs and delivery of market leading financial services even in fragile economies.
Over the years, Proparco and the 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.
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:
- 1. A Climate disclosure report to communicate on its green lending, exposure to carbon intensive sectors, and exposure to physical climate risks; and
- 2. A Climate Strategy including sustainable finance objectives, GHG emissions reduction targets for both operational and financed emissions, first sector decarbonization strategies for the most carbon intensive sectors, and an exclusion policy covering thermal coal mines and coal-fired power plants.