Côte d’Ivoire has secured a €433 million sustainability-linked loan (SLL), a milestone as Africa’s first SLL pegged to environmental performance. Structured around measurable goals, the loan ties its interest rate to the country’s ability to meet pre-defined sustainability goals, including increasing the share of non-hydropower renewable energy, reducing forest loss, and restoring degraded land.
The loan aims to promote green job creation, strengthen climate resilience, and attract private financing for sustainable development. Its pricing mechanism includes a “step-down” interest rate if Côte d’Ivoire meets or exceeds its targets and a “step-up” rate if it falls short. Progress will be tracked through annual reports from the Ministry of Finance, backed by remote sensing and geospatial monitoring.
Key Stakeholders
Standard Chartered: Sole Lender and Deal Architect
Standard Chartered plays two pivotal roles in this deal:
- Sole Lender: The bank is providing the full €433 million from its own balance sheet, there is no lending syndicate.
- Mandated Lead Arranger: The bank also structured the deal, aligning it with Côte d’Ivoire’s Sustainability-Linked Financing Framework, and coordinated with the Ivorian government and the World Bank Group to operationalize it.
Sujithav Sarangi, Executive Director, Development & Agency Finance, Standard Chartered says:
“We are proud to support the Republic of Côte d’Ivoire with this landmark, first-of-its-kind Sustainability-Linked Loan as sole lender. As a result of close collaboration with the country’s Ministry of Finance and the World Bank Group, this innovative structure aligns financing with clear, measurable objectives under the country’s new Sustainability-Linked Financing Framework. It showcases how collaborative innovation can help mobilise capital efficiently and support credible models for sovereign sustainable finance.”
De-Risking Through Multilateral Guarantees
What distinguishes this deal is its innovative dual guarantee structure involving two arms of the World Bank Group:
- IBRD (International Bank for Reconstruction and Development) provides a first-loss guarantee, shielding Standard Chartered against early defaults.
- MIGA (Multilateral Investment Guarantee Agency) adds a second-loss guarantee, covering losses beyond IBRD’s layer.
These guarantees are contingent liabilities, not direct financing. They de-risk the transaction, making it more attractive to private lenders while preserving fiscal flexibility for IBRD and MIGA.
Côte d’Ivoire Strategic Fit
Côte d’Ivoire is no stranger to financial innovation. Beyond its macroeconomic stability and policy credibility, the country has tested numerous development finance instruments—from debt-for-education swaps to ESG Samurai bonds. Its administrative efficiency and alignment with international norms make it a low-risk proving ground for complex, high-impact finance models.
Adama Coulibaly, Minister of Finance and Budget of the Republic of Côte d’Ivoire says:
“This transaction demonstrates our continued commitment to our comprehensive financing strategy, which focuses on diversification, innovation and debt sustainability. The favourable conditions obtained will allow us to access long-term, competitive and essential financing to advance our national climate resilience agenda. Through this pioneering initiative, we reaffirm our commitment to the Sustainable Development Goals.”
Final Thoughts
This Sustainability-Linked Loan (SLL) may well serve as a real-world test case for the evolving landscape of public financing. As traditional sources of development aid continue to decline, African governments and financial institutions are increasingly turning to private capital markets to fund infrastructure, climate transition, and inclusive growth.
This shift signals a broader rethinking of how nations finance their futures, where public-private partnerships, performance-linked instruments, and market-driven solutions are becoming central pillars. As explored in our August 28 article, this pivot away from traditional donor models marks a strategic reorientation for much of the continent: Africa’s Public Lenders Step into Capital Markets.
Still, this remains debt—even if structured around performance-linked conditions. The guarantees provided by institutions like the World Bank are not grants. They imply significant responsibilities for beneficiary states, particularly in terms of governance, transparency, and long-term accountability.
That said, with disciplined and strategic management, these instruments could also become powerful levers: improving social outcomes, strengthening countries’ credibility in global financial markets, and gradually reducing dependence on external validation.
If well executed, innovative finance can indeed mark a decisive turning point—but only if political, institutional, and technical responsibilities are clearly assumed from the outset.
References
- https://www.environmental-finance.com/content/news/cote-divoire-signs-first-sovereign-sustainability-linked-loan.html
- https://www.sc.com/uk/2025/09/02/standard-chartered-delivers-cote-divoires-first-sustainability-linked-loan-under-new-sustainability-linked-financing-framework
- https://www.miga.org/press-release/guarantee-platform-delivers-first-joint-ibrd-miga-guarantee-cote-divoires
- https://news.fundsforngos.org/2025/09/04/ivory-coast-secures-africas-first-sustainability-linked-loan-backed-by-world-bank-guarantee
- https://africanpact.org/2025/08/28/public-lenders-capital-markets-africa/
- https://www.ecofinagency.com/news/1807-47743-cote-divoire-breaks-new-ground-with-336-million-samurai-bond
- https://www.ecofinagency.com/news-finances/0309-48381-cote-d-ivoire-signs-its-first-sustainability-linked-loan-for-504mln