IVORY COAST: the first securitization for access to electricity records €91 million

The implementation of the Electricity for All Program (PEPT) is expected to accelerate over the coming years in Côte d'Ivoire. A bond issued by a securitization vehicle in local currency and intended to support this initiative of the Ivorian government records an investment of 60 billion CFA francs (more than 91 million euros) from two investors.

The International Finance Corporation (IFC), the subsidiary of the World Bank Group and the Emerging Africa Infrastructure Fund (EAIF) of the Private Infrastructure Development Group (PIDG) are each providing 30 billion CFA francs, more than 45.7 million euros. This is the first social bond issued for access to electricity within the West African Economic and Monetary Union (UEMOA). Very little valued in Africa currently, this debt instrument is used to finance or refinance social projects.

Access to electricity for 800,000 households

This first transaction was arranged by the investment bank Africa Link Capital, based in Abidjan. “Distribution is managed by local brokers BoA Capital Securities and Nsia Finance. The instrument was certified as a social bond, after receiving a second opinion from the rating agency Moody's ,” says the EAIF. The proceeds from this social bond will allow the connection to Côte d'Ivoire's national electricity network of 800,000 disadvantaged households over the next four years thanks to the PEPT program.

“The implementation of PEPT has proven to be decisive in improving access to electricity for poor populations in rural and urban areas in Côte d'Ivoire ,” explains Zahalo Silué, president of the PEPT fund management committee. . As part of this initiative launched by the Ivorian government in October 2014, each household pays 1,000 francs (less than 2 euros) for connection to the electricity network, instead of 150,000 francs, more than 228 euros.

The PEPT fund finances the remaining amount of the connection cost, approximately 149,000 francs (approximately $227), by offering the customer financing whose repayment can be spread over a period of 2 to 10 years. This strategy allowed Côte d'Ivoire to increase the rate of access to electricity for its population to more than 71% in 2021 according to the World Bank. To date, the PEPT program has enabled the connection of 1.6 million households to electricity networks. According to the IFC, the proceeds from the recent social bond will increase this rate of access to electricity by at least 13% over the next four years.