Ecobank Transnational Incorporated signed a USD 200 million sustainability-linked loan in December 2023, on the sidelines of COP28 in Dubai, becoming the first financial institution in Sub-Saharan Africa to close a facility of this type. The loan was arranged by Proparco, the French development finance institution dedicated to private sector financing in developing countries, alongside a consortium of co-lenders comprising Norfund, DEG, FMO, and EFP.
The loan's interest rate is tied to climate key performance indicators, meaning Ecobank's borrowing cost will move depending on whether the bank achieves the agreed sustainability targets within the prescribed timeframes.
CLIMATE KPIS
Two climate KPIs are linked to the loan's pricing. Ecobank must publish a Group-wide Climate Disclosure Report that covers its operations and lending activities across all markets in which it operates, and must finalise and adopt a formal Group Climate Strategy.
PAN-AFRICAN GROUP
Ecobank operates in more than 30 countries across Africa and is incorporated in Togo.
Proparco chief executive Françoise Lombard described the facility, the first sustainability-linked loan to a banking group in Sub-Saharan Africa, as a flagship transaction.
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