BFV-SOCIETE GENERALE
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
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
Société Générale Madagascar ('SGM'), a new client to FMO, is the largest bank in Madagascar (an LDC). As a subsidiary of the globally operating Société Générale S.A., SGM started its operations in Madagascar in 1998 after acquiring a formerly state-owned local bank. SGM supports its clients as a universal bank by leveraging the group’s global reach and wide range of products and services to individuals, SMEs, and corporates. SGM has an extensive network of agents, branches, and ATMs spread across Madagascar, enabling access to finance to end-clients.
What is our funding objective?
FMO is an anchor investor in the sustainability-linked bond issuance of SGM, which is aligned with the ICMA Green Bond Principles. FMO’s USD 10mln financing is earmarked exclusively for renewable energy use of proceeds, providing essential capital to advance the Green agenda in Madagascar.
Why do we fund this investment?
Through this funding, FMO is providing SGM with needed long-term funding for renewable energy projects, addressing a scarcity in the country. This transaction is the first sustainability-linked bond issued in Madagascar. It is a local currency-denominated bond of up to USD 35mln overall, also involving local investors. It serves local capital market development and qualifies 100% for both FMO’s Reducing Inequalities and Green labels, under the MASSIF banner.
What is the Environmental and Social categorization rationale?
SGM is classified as E&S Category A in accordance with FMO’s Sustainability Policy. The E&S risk classification reflects SGM’s exposures to the corporate segment. In response to the increased E&S risks, an Environmental & Social Action Plan (ESAP) has been developed and agreed upon to ensure SGM’s alignment with FMO’s E&S risk management standards. FMO will monitor SGM’s progress in implementing the ESAP.
- Website customer/investment
- https://societegenerale.mg/fr/
- Region
- Africa
- Country
- Madagascar
- Sector
- Financial Institutions
- Publication date
- 7/12/2024
- Effective date
- 7/8/2024
- Total FMO financing
- USD 10.00 MLN
- Funding
- MASSIF
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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