Ecobank Transnational Incorporated
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Established in 1985, Ecobank Transnational Incorporated is a Togo-based, pan-African banking group with operations in 36 African countries. It is one of the leading banks across the continent with 32 million customers and almost 700 branches. The Group also has a licensed operation in Paris and representative offices in Beijing, Dubai, Johannesburg, London and Addis Ababa. 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. Its subsidiary banks rank top 3 bank in 14 African countries with its main markets being Francophone West-Africa, Central, Eastern and Southern Africa, Anglophone West Africa, and Nigeria. For more information: www.ecobank.com
What is our funding objective?
FMO, as a co-lender with other European Development Financial Institutions (Proparco, DEG, Norfund, and EFP), will contribute to the financing of a sustainability linked loan for a total amount of USD 200 mln to Ecobank Transnational Incorporated with an objective to support the group's sustainability and climate's strategy. It is the first sustainable linked loan to ETI as well for a Sub-Saharan Financial Institution. The facility is linked to two major climate commitments including Climate Disclosures and definition of a Climate Strategy by Ecobank Transnational Incorporated (ETI). A technical assistance on Environmental, Social and Corporate Governance (ESG) aspects will also be put in place for the Environment and Social Management System (ESMS) improvement.
Why do we fund this investment?
50% of FMO’s funding will be directed towards several least developed countries where ETI is present which is in line with FMO’s objectives to contribute to SDG 10 (Reducing inequalities) where it is needed the most. FMO will then contribute to grow the MSME portfolio of the group, provide a long-term funding better suited with the project's lifecycles and increase the part of the climate-oriented projects.
What is the Environmental and Social categorization rationale?
ETI is an E&S Cat. A bank due to the high E&S risk portfolio. The clients in the bank's portfolio are active in sectors which have potential significant and adverse environmental and social impacts, such as oil & gas, power generation, agriculture, construction and manufacturing. Potential E&S risks of projects in these sectors are community grievances, land and natural resources conflicts, resource use, pollution related aspects, harsh labour conditions, occupational health and safety issues, biodiversity impacts, use of security forces, etc. ETI is an Equator Principles signatory. The bank has developed an adequate and functioning ESMS. The agreed environment and social action plan aims to increase ETI’s internal E&S capacity and enhance the bank’s E&S risk management framework.
More investments
| Date | Total FMO financing |
|---|---|
| 12/13/2021 | EUR 0.10 MLN |
| 6/10/2021 | USD 50.00 MLN |
| 11/18/2021 | USD 50.00 MLN |
| 7/22/2022 | USD 50.00 MLN |
| 7/22/2022 | USD 5.50 MLN |
- Website customer/investment
- http://www.ecobank.com
- Region
- Africa
- Country
- Africa
- Sector
- Financial Institutions
- Publication date
- 1/23/2024
- Effective date
- 12/8/2023
- Total FMO financing
- USD 60.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A