In a groundbreaking move, the Italian Climate Fund has subscribed to the first-ever hybrid bond issued by a multilateral bank aimed exclusively at climate change mitigation. This €100 million initiative, managed by Cassa Depositi e Prestiti (CDP) for the Ministry of Environment and Energy Security (MASE), will finance renewable energy projects in Benin, Burkina Faso, Côte d’Ivoire, Niger, Senegal, Togo, Mali, and Guinea-Bissau.
The historic agreement, signed at CDP’s headquarters, marks a significant step in addressing climate change in West Africa. Key attendees included Edmondo Cirielli, Deputy Minister of Foreign Affairs and International Cooperation; Serge Ekue, President of BOAD; and Dario Scannapieco, CEO of CDP. The funds will be directed toward building and rehabilitating renewable energy infrastructure, diversifying the energy mix, reducing CO2 emissions, and cutting energy production costs. This supports UN Sustainable Development Goal 7 (“Affordable and Clean Energy”).
Serge Ekue, President of BOAD, emphasized the importance of this Sustainable Hybrid Private Placement in strengthening BOAD’s capital structure and advancing its Djoliba Strategic Plan. This second hybrid bond transaction demonstrates BOAD’s commitment to economic growth and sustainable development through innovative financing.
The hybrid bond, one of the first of its kind, aligns with the G20’s recommendations under Italy’s presidency to enhance multilateral development banks’ investment capacity. This bond follows a similar issuance by the African Development Bank in January 2024.
The Italian Climate Fund, with a €4.2 billion allocation, aims to finance public and private projects in emerging and developing countries, supporting Italy’s international climate commitments.
Gilberto Pichetto Fratin, Italy’s Minister of Environment and Energy Security, highlighted the innovative euro-denominated hybrid bond as part of the Mattei Plan, supporting sustainable economic growth in Africa. Edmondo Cirielli reaffirmed the Climate Fund’s strategic role in promoting economic growth and environmental sustainability in West Africa.
Dario Scannapieco, CEO of CDP, noted the operation’s significance for the Italian Climate Fund and its alignment with the UN’s Agenda 2030 goals. The bond will strengthen BOAD’s capitalization and the African banking system, funding renewable energy projects across eight West African countries. This initiative complements the Mattei Plan’s efforts to support climate change mitigation in Africa.
COMMENTS