West African Development Bank (BOAD) Issues First Hybrid and Green Bond of €100 Million with Cassa Depositi e Prestiti (CDP) on Behalf of the Italian Climate Fund
The West African Development Bank (BOAD) has made history by issuing its first hybrid and green bond of €100 million with Cassa Depositi e Prestiti (CDP) acting on behalf of the Italian Climate Fund. This milestone marks the first time a multilateral development bank has issued a euro-denominated hybrid and green bond.
This fundraising effort provides a significant leverage effect for the bank, enabling it to grant new financing of €400 million to the economies of the West African Economic and Monetary Union (UEMOA) member states without impacting its ratios, competitiveness, and ability to deliver financing at advantageous costs. The operation effectively strengthens the bank's capital base, supports its rating, and preserves its access to international financing at competitive costs.
The funds will be used for the construction and rehabilitation of renewable energy production infrastructure in the region, including Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. These economies need to diversify their energy mix, reduce greenhouse gas emissions, and lower energy production costs.
This achievement should inspire Tunisian authorities to explore similar funding opportunities. We are lagging behind in terms of reducing our carbon footprint, but we have an established regulatory framework and a capable market. What we need is technical assistance in pricing. To our knowledge, a similar project exists, and there is close collaboration with the World Bank Group on this matter, but it has yet to yield results. Let's hope we can unlock this financing source quickly, as we urgently need it.
