ECOWAS Bank Launches $70 Million Green Bond Offering in West Africa

Finance
Tuesday, 16 July 2024 09:46
ECOWAS Bank Launches $70 Million Green Bond Offering in West Africa

(Togo First) - The Ecowas Bank for Investment and Development (EBID) launched yesterday a green and sustainable bond issue in the UEMOA (West African Economic and Monetary Union) zone, via a public offering. The Bank seeks about $70 million through the issue, the first of a kind in the WAEMU market.

This operation will help raise the third tranche in a series of fund-raising initiatives targeting CFA240 billion (around $240 million) that EBID initiated to finance economic stimulus investments by its member states. The Bank raised CFA170 billion (approximately $170 million) through previous tranches.

Yesterday’s issue involves 7 million bonds, each with a face value of 10,000 CFA francs, with a 7-year maturity (including 2 years of deferral) and a net annual interest rate of 6.5%. 

Proceeds will be "destined exclusively for the financing of a selection of projects identified mainly in Côte d'Ivoire, Senegal, Benin, and Guinea Bissau," focusing on sectors such as infrastructure, energy, and health, according to the joint financing institution.

A year ago, EBID raised a record CFA120 billion on the WAEMU market.

The recently launched operation shows the lender’s efforts to mobilize financing for sustainable development projects across West Africa, leveraging the regional financial market.

Octave A. Bruce

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