Ecobank secures $200 million loan to fund climate ambitions

In a recent development, Ecobank Transnational Incorporated (ETI), headquartered in Lomé, has officially inked a deal for a $200 million sustainability-linked loan. RALD NEWS MEDIA reports that this groundbreaking credit, supporting Ecobank Group's sustainability and climate strategy, marks the first of its kind granted to a financial institution in sub-Saharan Africa. The consortium comprising five European Development Institutions – Proparco, Norfund, FMO, DEG, and EFP – collaborates to facilitate this significant initiative.

This financing initiative, inclusive of a climate action plan, is designed to advance Ecobank's commitment to sustainability. German consulting firm IPC, in conjunction with Proparco as the lead arranger, will offer advisory support to help ETI realize its sustainability targets, according to a statement by ETI.

The partnership between Proparco and Ecobank Group has seen consistent reinforcement over the years through various loans, bond subscriptions, and risk-sharing facilities. These initiatives aim to provide financial access to underserved segments, as highlighted in the official document.

Notably, this announcement follows a similar move by ETI in June 2021 when it successfully raised $350 million through Tier 2 sustainability notes with a maturity date set for June 2031. As part of its commitment to sustainability, ETI is developing a comprehensive climate disclosure report, covering green lending practices, climate risks, and exposure to carbon-intensive industries.

The sustainability strategy outlined by Ecobank includes goals for sustainable finance, plans for decarbonizing high-emission industries, a policy excluding thermal coal mines and coal-fired power plants, and targets for reducing greenhouse gas emissions. Jeremy Awori, CEO of the Ecobank Group, emphasizes the integral role of sustainability in the company's pan-African purpose, highlighting the significance of this sustainability-linked loan agreement as a demonstration of Ecobank's dedication to both responsibility and opportunity.