Project detail - ECOBANK TRANSNATIONAL INCORPORATED

Who is our customer

Incorporated in Lomé, Togo in 1988, Ecobank Transnational Incorporated (‘ETI’) is a leading pan-African group with operations in 33 countries across the continent. It has the largest footprint in Africa, servicing over 24 million customers with nearly 700 branches across the continent. 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 Corporates, medium, small and micro businesses, individuals, financial institutions, multinationals, international organizations and governments. Additional information on ETI can be found at www.ecobank.com.

What is our funding objective?

FMO provided Tier-II financing (according to Basel III regulation) in order to strengthen the capital position of the client. In addition, the proceeds of the issue of the Notes will be used by ETI to fund eligible assets as described in ETI's Sustainable Finance Framework (“SFF”). More information on the SSF is available at www.ecobank.com/group/sustainability-finance-framework

Why do we fund this investment?

First of all, ETI is committed to actively contributing to the UN SDGs through funding green and social projects. This commitment has recently been formalized and is being driven through their SSF. Second, FMO by acting as a sole anchor investor helped to crowd in other commercial parties and therefore supported the development of the Debt Capital Market (‘DCM’) in the African continent. ETI will be able to continue building its presence in international fixed income capital markets, while also diversifying their investor base and funding sources through (re-) financing green and/or social projects. This is a landmark transaction for Africa, as it is the first Tier-II capital bond under Basel III regulations and the first Sustainability Bond in sub-Saharan Africa, outside of South Africa.

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 and the exposure to certain sectors, ETI is exposed to a limited number of high-risk transactions which can have potential significant and adverse environmental and social impacts. The ETI has transactions, amongst others, in the extractive industry, mid- and downstream oil and gas, heavy infrastructure construction, manufacturing, power generation/transmission/distribution and commercial real estate sector. ETI is an Equator Principles signatory. The bank has developed an adequate and functioning ESMS which was updated, and board approved in November 2019.

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