AFDB Grants 400 Million Euros ‘Partial Credit Guarantee’ to Côte d’Ivoire for ESG Projects: Sustainable Finance News

2023-07-15 15:08:44

The African Development Bank (AfDB) has granted a “partial credit guarantee” of 400 million euros to Côte d’Ivoire to help this country raise funds on the international financial market for projects in the fields of environment, social and governance (ESG).

This “partial credit guarantee” will allow Abidjan to raise long-term financing from commercial banks for projects eligible for ESG financing, particularly in sustainable agriculture and agro-industry, water and sanitation, renewable energy, health, access to affordable housing, education and vocational training, financial inclusion, entrepreneurship and job creation for rural youth and women, says a statement from the AfDB.

According to the same source, the use of ESG borrowing is part of Côte d’Ivoire’s medium-term debt management strategy, which pursues “objectives of innovation and diversification of its sources of financing for strategic projects with a strong social and environmental impact”.

“The granting by the African Development Bank of a partial credit guarantee backed by ESG-labeled financing is a key milestone in our financing strategy, for which ESG instruments have become an essential component,” said Adama Coulibaly, Ivorian Minister of Economy and Finance.

“This AfDB support has a real catalytic effect and enables us today to mobilize long-term financing, at an attractive cost, in line with the objectives of our medium-term debt management strategy,” added Adama Coulibaly.

“We welcome the approval of this project which will enable Côte d’Ivoire to implement green and social projects, while diversifying its sources of financing through the mobilization of sustainable loans”, said, for his part, Joseph Ribeiro, Deputy Director General of the African Development Bank for the West Africa region.

He added that the funds raised will help strengthen the implementation of Côte d’Ivoire’s 2021-2025 National Development Plan, “which is strongly supported by the African Development Bank Group”.

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