The African Development Bank (AfDB) has approved and subscribed up to XOF 15 billion (EUR 22.9 million) as an anchor investor in Côte d’Ivoire’s PEPT 2 social bond, its first local-currency social bond investment in the West African Economic and Monetary Union (WAEMU), the lender said on Tuesday.
The financing package includes EUR 16 million from the Bank and EUR 6.9 million from the Sustainable Energy Fund for Africa (SEFA), following a Board approval on 15 October. The bond will support Phase II of the Programme Électricité Pour Tous (PEPT), which aims to make electricity connections more affordable for low-income households.
The PEPT 2 transaction will finance 400,000 new electricity connections between 2025 and 2026, extending access to an estimated 2.2 million people, 35% of whom live in rural areas. It forms part of Mission 300, AfDB’s initiative to bring electricity to 300 million Africans by 2030.
“This innovative social bond structure shows how the Bank is deploying creative financing solutions to achieve universal energy access,” said Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth. “By mobilizing capital markets and making connections affordable for low-income households, we are powering economic transformation.”
Since its launch in 2014, the PEPT program has allowed eligible households to reduce upfront connection costs from XOF 150,000 to XOF 1,000, with the remaining balance repaid over several years through electricity bills. The new XOF 60 billion social bond is structured in three tranches with maturities of 7, 10 and 15 years.
The securitization vehicle is managed by Africa Link Capital Titrisation, with Africa Link Capital Structuration arranging the bond. On 17 October, AfDB, the Emerging Africa & Asia Infrastructure Fund (EAAIF) with an IFC guarantee, and Norfund each anchored portions of the issuance.
“This landmark transaction advances the use of green, social and sustainability instruments in the BRVM market,” said Ahmed Attout, Director of AfDB’s Financial Sector Development Department. “It deepens regional market integration and supports a sustained flow of sustainable financing.”
Wale Shonibare, Director of Energy Financial Solutions, said the project demonstrates the type of innovative, market-based instruments needed to meet Africa’s universal access goals. “By connecting over 400,000 households, we are accelerating electrification at the scale required to reach 300 million people.”
