Copperbelt's $97m Green Bond, Nigeria Bank of Industry's €2 Billion Syndicated Facility , AfDB Invests in West African Development Bank (BOAD)

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Copperbelt Energy Issues $97 million Green Bond.

Copperbelt Energy Corporation (CEC), a Zambian-based energy generation and distribution company, has issued a $97 million green bond.

Why does it matter:?Zambia is currently grappling with an energy crisis that has resulted in significant rotational load-shedding across the country.

• Copperbelt Energy issued Zambia's first green bond in 2023, raising $53 million. This funds was used to build and operate two solar plants with a generating capacity of 94 megawatts (MW) and contributes 166,079 megawatt-hours (MWh) to the national electricity grid.
• The proceeds from this second tranche will fund the second phase of the Itimpi Solar Photovoltaic (PV) plant, which is expected to contribute an additional 136 MW to the company's renewable energy portfolio.
• Investors who participated in this bond issuance include ZCCM Investments Holdings Plc (ZCCM-IH), the Dutch entrepreneurial development bank FMO, the African Local Currency Bond Fund (ALCB Fund), and Emerging Africa and Asia Infrastructure Fund Limited (EAAIF).

As Africa's financial landscape increasingly pivots toward sustainable investment, the issuance of green bonds is gaining traction, driven by heightened awareness among governments and local private sector entities. Investment in green projects would address the climatic challenges, contribute to job creation, and foster innovation across multiple sectors.

Middle East Investors Show Growing Interest in African Deals.

Middle Eastern investors are increasingly focusing on investment opportunities in Africa.(Read more -Free to Sign up)

MARKET AND MACRO?ACTIVITIES

• Morocco and the African Development Bank (AfDB) are enhancing their cooperation by signing three funding agreements totalling €344.7 million.
• Cameroon has secured a ￡60 million financial packaged deal with the UK to support improving large areas of land for agriculture, with support from British firms.
• Kigali, Rwanda's capital, has secured a $100 million loan from the African Development Bank (AfDB) to modernise its urban infrastructure.
• Zambia is working to restructure the repayment terms for its $740 million foreign exchange-indexed, interest-bearing government securities, which are set to mature between 2025 and 2034.
• Nigeria's Federal Government has announced a $12.4 million consumer credit fund with a single-digit interest rate for locally manufactured automobiles.
• C?te d’Ivoire has secured a $50 million financial package from the Abu Dhabi Fund for Development (ADFD) to finance the first phase of constructing 25,000 social housing units in Abidjan, C?te d’Ivoire.

THE TERM SHEET

M & A?:

Chappal Energies, a Nigerian ESG-focused energy company, has acquired Equinor Nigeria Energy Company, a subsidiary of Equinor ASA, the Norwegian energy firm. This deal grants Chappal Energies control over Equinor Nigeria Energy Company (ENEC), which holds a 53.85% ownership stake in the oil and gas lease OML 128. This includes a 20.2% interest in the Chevron-operated Agbami oil field and the operatorship of OML 129.

Salt Capital, a private equity fund manager focused on Sub-Saharan Africa, has acquired a stake in Pirtek Africa, a supplier and distributor of hydraulic and industrial fluid transfer solutions to African markets.

Fundraising?:

Seedstars Africa Ventures, an early-stage venture capital fund, has completed the first close of its Seedstars Africa Ventures I fund, securing commitments of $42 million from key investors, including the African Development Bank and EIB Global, with support from the European Union under the ACP Trust Fund - EU Compartment and Boost Africa, among other global investors.

The African Development Bank Group has invested $24 million in equity in the West African Development Bank (BOAD). This investment includes $10.8 million in callable capital, which will be available from 2023 through 2027 to support regional businesses and projects in member countries.

The Bank of Industry (BOI), Nigeria’s largest and most impactful development finance institution, has secured a facility of up to €2 billion from the Africa Finance Corporation (AFC).

OCP Group, the Moroccan phosphate giant, plans to issue bonds worth $503 million to finance an increase in OCP's fertiliser production capacity and expand its production of Lithium Iron Phosphate battery components to meet growing global demand.

Energy

Brighter Life by d.light (BLd), the first multi-country receivables financing facility formed by d.light and African Frontier Capital (AFC), has secured a $5 million investment from Acumen’s Hardest-to-Reach (H2R) initiative. This $250 million initiative targets investments in clean energy projects across 16 of Africa's underserved geographies.

Camco, a climate and impact fund manager, has completed the first close of its new REPP 2 debt fund, raising $ 185 million for investments to decarbonise the African energy grid. Of this amount, $78 million has been committed, subject to conditions. Investors in the fund include the Green Climate Fund (GCF), Norfund, FMO, BIO, Ceniarth, and the Renewable Energy Performance Platform (REPP), funded by UK International Development.

Technology:

HUB2, an Ivory Coast-based fintech, has raised $8.5 million in Series A funding to improve its technology infrastructure. TL.com led the funding round, which included investors such as FMO, Enza Capital, Bpifrance, and Eric Barbier, the founder of Thunes.

Infrastructure:

The African Infrastructure Investment Fund 4 (AIIF4), managed by African Infrastructure Investment Managers (AIIM), has secured a ￡5 million investment from Schroders Capital and BlueOrchard, the Green Earth Impact Fund (GEIF), a climate impact-focused fund of funds.

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