Today, FMO, the Dutch entrepreneurial development Bank, and TDB, Eastern and Southern African Trade & Development Bank, announce the signing of a syndicated USD 394 million Sustainability-Linked Loan (“SLL”) to ETC Group (ETG), a global conglomerate with a strong foothold in Africa and expertise across various industries. This significant financial commitment aims to support ETG’s working capital needs across Africa, reinforcing the company’s sustainability agenda and its pivotal role in the agricultural sector.
Joint mandated lead arrangers and lenders:
Lenders:
Participants:
A Sustainability-Linked Loan (SLL) is a type of loan designed to incentivize the borrower to achieve specific sustainability performance targets. Overall, SLLs are a powerful tool for companies to demonstrate their commitment to sustainability while accessing favorable financing terms. By collaborating with other DFIs and impact investors, the syndication partners aim to support and motivate ETG in achieving its sustainability goals, ultimately contributing to a more resilient and sustainable agricultural sector in Africa. One of ETG’s key targets is to reach one million African smallholder farmers, enhancing their production and crop quality.
Established in 1967 in Kenya, ETG has evolved into a global player across various industries, with a focus on supply chain optimization tailored to local requirements. With its roots deeply embedded in Africa, the group has made significant contributions to the development of local African economies. The company has been a valued client of FMO since 2019, consistently demonstrating a strong commitment to environmental and social (E&S) standards and sustainability. This SLL marks FMO’s first role as an arranger in such sustainability-linked financing.
Paul Van Spaendonk, Treasury Chief at ETG, said: “Despite significant and rapid growth over the years, ETG’s commitment to the African continent remains steadfast. We are humbled to partner with institutions that enable us to truly make an impact in the lives of people, whilst keeping a keen focus on addressing pressing issues pertaining to climate change and land conservation. We are enthused to continue this journey and to play our role in creating a sustainable future for generations to come.”
Fatou Bouaré, Chief Finance & Operations Officer and key-account holder for ETG at FMO, stated: “We are proud to be the arranger of this innovative and syndicated loan, the largest ever of its kind in the African agricultural sector. Few organizations have such a broad influence on African smallholders as ETG, providing them with market access and technical assistance to enhance yield quality. We thank ETG and our investment partners for their trust and cooperation in making this happen. We hope ETG will lead by example, inspiring other multinationals to underpin their sustainability targets with a sustainability linked loan.”
Michael Awori, Trade and Development Business Chief Executive said: ’’TDB is pleased to serve as co-arranger alongside FMO, as well as facility agent on this groundbreaking sustainability-linked loan for ETG, a longstanding client of the Bank. Since 2016, the Bank has financed over USD 350 million via several types of facilities for ETG which have served to support food security in the region and accelerate sustainable and responsible practices.’’
Read more about ETG’s sustainability-linked loan here: a groundbreaking deal, the future of finance in African agriculture
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About DEG
For more than 60 years, DEG has been financing and advising private enterprises operating in developing and emerging-market countries. With a portfolio of around EUR 10.3 billion we’re one of the largest private-sector development financiers. As an impact and climate investor we accompany companies that are addressing transformation and aiming to seize their opportunities. Our customers not only receive financing and advisory solutions tailored to their needs: they can build on our market knowledge, our impact and climate expertise and our international network. In this way, DEG, a subsidiary of KfW, contributes to creating more skilled jobs and local income and to improving value creation on the ground in line with the SDGs. Learn more: www.deginvest.de
About ETG
ETG has developed into a global player with a presence in more than 45 countries, spanning 6 continents. The Group has a diverse portfolio of expertise across various industries, encompassing agricultural inputs, chemicals, logistics, processing, food and food ingredients, energy, metals, technology and supply chain optimization. Over 35000 employees and contractors contribute every day to achieve our vision and purpose, and live our values of Respect, Integrity, Pursuit of Excellence, Leadership and Meritocracy. ETG’s verticals are structured in a manner to emphasize focus and optimize strategic growth opportunities. We adapt and grow responsibly as a diversified enterprise, creating a sustainable future for all our stakeholders.
About FinDev Canada
FinDev Canada is Canada’s bilateral Development Finance Institution (DFI), supporting development through the private sector. We provide financing, investment, and blended finance solutions, as well as technical assistance and knowledge, to promote sustainable and inclusive growth in emerging markets and developing economies (EMDEs), in alignment with the Sustainable Development Goals (SDGs) and Paris Agreement commitments. FinDev Canada is a wholly owned subsidiary of Export Development Canada (EDC). Find out more about FinDev Canada at www.findevcanada.ca.
About FMO & FMO Investment Management
FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a 50+ year proven track-record in empowering entrepreneurs to make local economies more inclusive, productive, resilient and sustainable. FMO focuses on three sectors that have high development impact: Agribusiness, Food & Water, Energy, and Financial Institutions. With a total committed portfolio of EUR ~13 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally.
Through FMO Investment Management, FMO’s wholly owned investment firm, investors can obtain access to FMO’s deal flow in sustainable emerging market investments. By joining forces, we scale up our contribution to the UN Sustainable Development Goals. For more information, please visit www.fmo.nl / www.fmo-im.nl
About ILX Management
ILX Management B.V. is the Amsterdam-based manager of ILX Fund I & ILX Fund II, which are emerging market focused private credit funds that invest in loan participations originated and structured by Multilateral Development Banks and other Development Finance Institutions. ILX aims to create large scale investment opportunities in global development finance that directly contribute to sustainable development across emerging markets. Dutch pension provider APG, on behalf of its pension fund clients ABP and bpfBOUW, and Pensioenfonds Vervoer recently increased their commitments to USD 1.5 billion in ILX Fund I. ILX also had a first close for ILX Fund II with 5 Danish pension funds in October 2024, bringing the combined commitments to USD 1.7 billion. ILX was created with the grant support from KfW, the German Development Bank, on behalf of the Federal Ministry of Economic Cooperation and Development (BMZ), the Netherlands’ Directorate General for International Cooperation and the UK Foreign, Commonwealth and Development Office. More information: www.ilxfund.com
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed about US$27 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.
About Proparco
Proparco, a subsidiary of Agence Française de Développement Group, has been working with the private sector for over 45 years for a more just and sustainable world. With an international network of 23 local offices, Proparco works closely with its partners to build sustainable solutions in response to environmental and social challenges in Africa, the Middle East, Asia and Latin America. Proparco benefits from sector-based expertise as well as a wide range of financial solutions tailored to the different stages of business development, notably thanks to its Digital Africa subsidiary, and its Propulse technical assistance offering designed to scale up the impacts and performance of its partners. Proparco's new "Acting together for greater impact” Strategy 2023-2027 enables, strengthens and amplifies the different ways in which it works with its partners. To learn more: http://www.proparco.fr/en/strategy.
For more information, go to: http://www.proparco.fr/en and @Proparco LinkedIn
About TDB
Established in 1985, the Eastern and Southern African Trade and Development Bank (TDB) is an investment-grade African regional development finance group, with the mandate to finance and foster trade, regional economic integration and sustainable development. With an asset base of USD 10 billion, TDB Group has 25 African member states, which alongside non-regional member countries and institutional investors from Africa, Europe and Asia, form TDB's community of shareholders. TDB Group counts several subsidiaries and strategic business units including Trade and Development Banking, TDB Asset Management (TAM), Trade and Development Fund (TDF), TDB Captive Insurance Company (TCI), the ESATAL fund management company and TDB Academy.
www.tdbgroup.org
