Ecobank secures $200 million loan to fund climate ambitions
Ecobank Transnational Incorporated (ETI) has inked a deal that will avail $200 million in sustainability-linked loan to the lender, the Lomé-based banking group said Friday.
The group of five European Development Institutions are Proparco, Norfund, FMO, DEG and EFP.
The credit, said to be the first of its kind to a sub-Saharan African financial institution, is to back Ecobank Group’s sustainability and climate strategy and also includes a climate action plan.
The duo of Proparco, which also is the lead arranger of the facility, and the German consulting firm IPC will offer advisory support to ETI’s teams to actualise the targets, according to a statement by ETI.
“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,” the document stated.
A similar move in June 2021 saw ETI raise Tier 2 sustainability notes valued at $350 million, with June 2031 set as the maturity date of the bond.
ALSO READ: The inner circle behind the rise of Ecobank CEO Jeremy Awori
ETI said its commitment to tackle the sustainability challenges faced by the organisation involves crafting a climate disclosure report to provide information on its green lending, vulnerability to physical climate risks as well and its exposure to carbon-intensive sectors.
That also entails developing a climate strategy that incorporates sustainable finance targets, first-sector decarbonisation strategies for the most carbon-intensive sectors, an exclusion policy covering thermal coal mines and coal-fired plants and GHG emissions reduction targets for operational and financed emissions.
“Sustainability is integral to Ecobank’s mandate and pan-African purpose,” said Jeremy Awori, chief executive officer of the Ecobank Group.
“The signature of this sustainability-linked loan agreement is another confirmation of the seriousness which the Ecobank Group accords to sustainability, which for us is both a responsibility as well as an opportunity.”
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Ecobank Transnational Incorporated (ETI) has inked a deal that will avail $200 million in sustainability-linked loan to the lender, the Lomé-based banking group said Friday.
The group of five European Development Institutions are Proparco, Norfund, FMO, DEG and EFP.
The credit, said to be the first of its kind to a sub-Saharan African financial institution, is to back Ecobank Group’s sustainability and climate strategy and also includes a climate action plan.
The duo of Proparco, which also is the lead arranger of the facility, and the German consulting firm IPC will offer advisory support to ETI’s teams to actualise the targets, according to a statement by ETI.
“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,” the document stated.
A similar move in June 2021 saw ETI raise Tier 2 sustainability notes valued at $350 million, with June 2031 set as the maturity date of the bond.
ALSO READ: The inner circle behind the rise of Ecobank CEO Jeremy Awori
ETI said its commitment to tackle the sustainability challenges faced by the organisation involves crafting a climate disclosure report to provide information on its green lending, vulnerability to physical climate risks as well and its exposure to carbon-intensive sectors.
That also entails developing a climate strategy that incorporates sustainable finance targets, first-sector decarbonisation strategies for the most carbon-intensive sectors, an exclusion policy covering thermal coal mines and coal-fired plants and GHG emissions reduction targets for operational and financed emissions.
“Sustainability is integral to Ecobank’s mandate and pan-African purpose,” said Jeremy Awori, chief executive officer of the Ecobank Group.
“The signature of this sustainability-linked loan agreement is another confirmation of the seriousness which the Ecobank Group accords to sustainability, which for us is both a responsibility as well as an opportunity.”
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
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