Emerging Africa Infrastructure Fund supports West Africa’s first social asset-backed security

The Emerging Africa Infrastructure Fund (EAIF) has committed up to XOF 30 billion (equivalent to about US$48 million) to launch West Africa’s first ever social asset-backed security. The XOF 60 billion (about $96 million) bond will be issued by special purpose vehicle Fonds Commun de Titrisation de Créances Electricité Pour Tous (FCTC EPT) in local currency, building towards universal access to electricity in Côte d’Ivoire.

The first phase of the security, backed by revenue from energy tariffs collected from the launch of the government-led Electricity for All (PEPT) programme, will modernise the country’s power sector.

EAIF will act as a co-investor, deploying capital in two tranches alongside the International Finance Corporation (IFC). The combined commitments of up to XOF 60 billion will encourage participation by local investors. Africa Link Capital is serving as the mandated lead arranger with distribution being managed by local brokers BoA Capital Securities and NSIA Finance. The instrument has been certified as a social bond, having received a second party opinion from ratings agency Moody’s.

As part of the PEPT programme aimed at achieving 100% electrification across the country, the implementing agent – Compagnie Ivoirienne d’Électricité (CIE) – will use the proceeds of the bond to expand last mile connectivity. This will contribute to financing the connection of up to 800,000 additional low-income households to the national grid over the next four years.

Commenting on the transaction, Folatomi Fayemi, investment specialist at Ninety One, fund manager of the Emerging Africa Infrastructure Fund, said, “We are delighted to play a pivotal role in improving the lives and prospects of Côte d’Ivoire’s most underserved communities, while signalling the possibilities of financial innovation to the rest of the market. By breaking new ground with this transaction, we hope to accelerate and deepen the participation of domestic capital markets in Africa’s sustainable development.”