Key Developments
EAIF Launches West Africa’s First Ever Social Asset-Backed Security, Targets 100% Electrification in Côte d’Ivoire
The Emerging Africa Infrastructure Fund (EAIF) has committed up to XOF 30 billion (equivalent to USD ~ 48 million) to launch West Africa’s first-ever social asset-backed security.
The XOF 60 billion (equivalent to ~ USD 96 million) bond will be issued by special purpose vehicle Fonds Commun de Titrisation de Créances Electricité Pour Tous (FCTC EPT) in local currency, building towards universal access to electricity in Côte d’Ivoire.
The first phase of the security, backed by revenue from energy tariffs collected from the launch of the government-led Electricity for All (PEPT) programme, will modernise the country’s power sector.
The first phase of the security, backed by revenue from energy tariffs collected from the launch of the government-led Electricity for All (PEPT) programme, will modernise the country’s power sector.
Improving access to energy and boosting economic productivity, predominantly in rural areas, the bond will enhance sustainability across the energy industry, in line with the PIDG ambition to achieve the UN’s Sustainable Goal on Affordable and Clean Energy (SDG 7).
EAIF will act as a co-investor, deploying capital in two tranches alongside the International Finance Corporation (IFC).
EAIF will act as a co-investor, deploying capital in two tranches alongside the International Finance Corporation (IFC).
The combined commitments of up to XOF 60 billion will encourage participation by local investors.
Africa Link Capital is serving as the mandated lead arranger, with distribution being managed by local brokers BoA Capital Securities and NSIA Finance.
The instrument has been certified as a social bond, having received a second-party opinion from ratings agency Moody’s.
As part of the PEPT programme aimed at achieving 100% electrification across the country, the implementing agent – Compagnie Ivoirienne d’Électricité (CIE) – will use the proceeds of the bond to substantially expand last mile connectivity.
As part of the PEPT programme aimed at achieving 100% electrification across the country, the implementing agent – Compagnie Ivoirienne d’Électricité (CIE) – will use the proceeds of the bond to substantially expand last mile connectivity.
This will contribute to financing the connection of up to 800,000 additional low-income households to the national grid over the next four years, supporting SDG 7.
The landmark transaction also aims to ensure the longevity of the Ivorian energy sector by installing prepaid meters to improve revenue collection.
Deepening the role of local capital markets in financing critical development priorities across Côte d’Ivoire, the issuance builds on EAIF’s growing track record of anchoring social and green impact bonds.
Deepening the role of local capital markets in financing critical development priorities across Côte d’Ivoire, the issuance builds on EAIF’s growing track record of anchoring social and green impact bonds.
In addition, it increases EAIF’s local currency commitments in West Africa, previously anchoring a bond issued by telecoms giant Sonatel and investing in a bond funding the relocation of West Africa’s third busiest seaport.
The asset-backed security is a first for EAIF and cements the fund’s status as an essential partner in growing the country’s energy sector.
The asset-backed security is a first for EAIF and cements the fund’s status as an essential partner in growing the country’s energy sector.
Côte d’Ivoire is EAIF’s largest country exposure, with all investments designed to strengthen the growing power sector.
Launched in 2014, PEPT has achieved over 1.6 million connections to date.
Launched in 2014, PEPT has achieved over 1.6 million connections to date.
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