Success of the first green bond issue in Africa

The first private initiative green bond issue from francophone West and Central Africa could pave the way for new issues in the region.

The eight-year bonds of Emergence Plaza, owner of Côte d’Ivoire’s most visited shopping complex, Cosmos Yopougon, were issued today at a yield of 7.5%. The proceeds of the issue of 10 billion CFA francs (18.1 million dollars) will be used to refinance a bank loan from a local bank and to support the company’s future projects by strengthening its financial and operational solidity. . The issue, which was oversubscribed, was listed at 150 basis points, below the 9% interest rate it was paying on its CFA 8.4 billion bank loan.

The rapidly growing global green bond market has benefited Africans little, with the continent accounting for less than 1% of the $ 300 billion green bond issued each year. Of the $ 3.96 billion in green bonds issued to date in Africa, only $ 64 million was issued by non-financial companies before the Cosmos Yopougon operation, according to data compiled by the Climate Bonds Initiative , a Think-Thank specializing in green finance. Cosmos Yopougon thus becomes one of the only three African non-financial companies to issue green bonds, after Acorn Holdings (Kenya) and North South Power Company (Nigeria). This issue is also the first green bond issued by a West African company in the real estate sector.

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