Ecobank secures $200 million loan to fund climate ambitions

Ecobank Transnational Incorporated (ETI) has recently finalized an agreement for a $200 million sustainability-linked loan, marking a significant move for the Lomé-based banking group. The loan, considered the first of its kind for a sub-Saharan African financial institution, has been secured from a consortium of five European Development Institutions, namely Proparco, Norfund, FMO, DEG, and EFP.

The primary objective of this credit facility is to support the sustainability and climate strategy of the Ecobank Group, including the implementation of a climate action plan. Proparco, serving as the lead arranger for the facility, and the German consulting firm IPC will provide advisory support to ETI's teams in achieving the outlined sustainability targets, according to a statement by ETI.

Proparco and Ecobank Group have a longstanding partnership, with Proparco having provided various loans, bond subscriptions, and risk-sharing facilities over the years. This collaboration aims to offer financial access to underserved segments, particularly in the field of trade finance.

In a similar move in June 2021, ETI successfully raised Tier 2 sustainability notes valued at $350 million, with a maturity date set for June 2031.

As part of its commitment to addressing sustainability challenges, ETI plans to create a climate disclosure report that provides information on its green lending, vulnerability to physical climate risks, and exposure to carbon-intensive sectors. The bank will also develop a climate strategy encompassing sustainable finance targets, strategies for sector decarbonization, an exclusion policy covering thermal coal mines and coal-fired plants, and reduction targets for operational and financed emissions.

Jeremy Awori, the Chief Executive Officer of the Ecobank Group, emphasized the integral role of sustainability in Ecobank's mission and pan-African purpose. He highlighted that the agreement for the sustainability-linked loan reaffirms the seriousness with which the Ecobank Group approaches sustainability as both a responsibility and an opportunity.