Less than two months after publishing its Sustainability-Linked Finance Framework (SLF), the Republic of Côte d’Ivoire, acting through the Ministry of Economy, Finance and Budget, has reached another major milestone by successfully securing its first Sustainability-Linked Loan (SLL) through a pioneering structure that is unprecedented on a global scale.
The loan, totaling €433 million and provided by Standard Chartered Bank, has a 15-year maturity, including a 10-year grace period. It benefits from preferential financial terms linked to key sustainable development performance indicators, notably the expansion of renewable energy (excluding hydropower), the prevention of deforestation, and the implementation of reforestation initiatives.
The transaction also represents a key milestone for the World Bank and the deployment of its new guarantee platform. The financing is based on a highly innovative and globally unprecedented structure that combines, for the first time, guarantee instruments from both the International Bank for Reconstruction and Development (IBRD) and the Multilateral Investment Guarantee Agency (MIGA). The structure includes a first-loss guarantee provided by the IBRD and a second-loss guarantee provided by MIGA, resulting in AAA-type coverage for the entire loan. This integrated guarantee framework enabled the extension of the loan’s maturity and a significant reduction in the banking margin applied to the transaction.
In addition, the operation will benefit from the support of an independent external party responsible for monitoring, reporting, and evaluating the sustainability performance indicators. By 2030, this mechanism will allow the financial terms of the loan to be adjusted through a bonus/malus incentive structure, further strengthening the alignment between financial objectives and sustainability commitments.
Through this inaugural Sustainability-Linked Loan, the Republic of Côte d’Ivoire reaffirms its commitment to structurally integrating ESG criteria into its resource mobilization strategy, thereby consolidating its position as a regional leader in sustainable finance.