Project detail - ECOBANK TRANSNATIONAL INCORPORATED

Who is our customer

Incorporated in Lomé, Togo in 1988, Ecobank Transnational Incorporated (‘ETI’) is a leading pan-African bank with operations in 36 countries across the continent. It has the largest footprint in Africa, servicing over 19 million retail customers in countries in West, Central, East and Southern Africa. The Group also has a licenced operation in Paris and representative offices in Beijing, Dubai, Johannesburg, London and Luanda. Ecobank is a full-service bank providing wholesale, retail, investment and transaction banking services and products to governments, financial institutions, multinationals, international organisations, medium, small and micro businesses and individuals. Additional information on ETI can be found at www.ecobank.com.

What is our funding objective?

The proceeds of the issue of the Notes will be used by ETI for general corporate purposes which will include the refinancing of a portion of ETI’s existing senior debt / maturing senior debt obligations.

Why do we fund this investment?

Through this investment FMO supports 1) small and medium-sized enterprises in some of the most underbanked countries in Africa and 2) the development of the Debt Capital Market (‘DCM’) in the African continent. By helping ETI to support job growth across Africa, including in Least Developed Countries, and by crowding in other investors, FMO aims to contribute to three of the Sustainable Development Goals: SDG 8 "Decent Work and Economic Growth", SDG 10 "Reduced Inequalities" and SDG 17 "Partnerships for the Goals".

What is the Environmental and Social categorization rationale?

ETI is classified as an E&S Category A in accordance with FMO’s Sustainability Policy. Overall, the E&S risk profile of the bank's portfolio is relatively moderate. However, due to the size of the bank, ETI is exposed to some high risk transactions which have potential significant and adverse environmental and social impacts. In 2018, Ecobank Group E&S unit managed a total of 110 transactions in sectors with significant E&S risks such as the extractive industry activities, mid & downstream oil and gas, heavy infrastructure construction, manufacturing, power generation/transmission/distribution, commercial real estate. The combined exposures to the severe (Medium B) and more severe (Medium A) E&S categories stood at 90, which corresponded to 81.8% of the total transactions screened. Only 7 transactions were assessed to be of high risk, which is 6.4% of the bank’s total E&S managed transactions at Group Office level. ETI is an Equator Principles signatory. The bank has developed an adequate E&S framework that can serve as a solid base on which further improvement can be build.

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