• Côte d’Ivoire secures €433M sustainability-linked loan with World Bank backing
• Loan tied to renewable energy growth and forest restoration targets
• Guarantees from IBRD and MIGA reduce investor risk, improve terms

Côte d’Ivoire has signed its first sustainability-linked loan for 433.3 million euros (about $504.6 million) with Standard Chartered Bank. Announced Tuesday, September 2, 2025, the transaction benefits from a dual guarantee from the World Bank through the International Bank for Reconstruction and Development (IBRD) and the Multilateral Investment Guarantee Agency (MIGA).

The IBRD provides a first-loss coverage of 260 million euros, while MIGA offers a second-loss coverage of 372.9 million euros, protecting the state against potential payment defaults. These 15-year guarantees reduce risk for investors, enabling Côte d'Ivoire to secure more favorable financing terms.

Loan Tied to Environmental Targets

The loan aims to promote the creation of green jobs, strengthen climate resilience, and mobilize private financing for the country's sustainable development priorities. “By combining IBRD and MIGA guarantees for the first time, we are helping Côte d'Ivoire secure better financing terms, accelerate its climate commitments, and build resilience in key sectors,” said Hiroshi Matano, MIGA's Executive Vice President.

The loan is structured as a Sustainability-Linked Loan (SLL). Its cost is tied to the country's ability to achieve specific, pre-defined sustainability targets. The mechanism includes a "step-down" interest rate for Côte d'Ivoire if it exceeds its targets and a "step-up" rate if it fails to meet them. Performance will be monitored and verified through annual reports from the Ivorian Ministry of Finance, supported by remote sensing and geospatial monitoring technologies.

Côte d’Ivoire has set two key objectives: increasing the share of non-hydro renewable energy from 1% of installed electrical capacity in 2023 to 11% by 2030, and limiting forest cover loss to 300,000 hectares between 2025 and 2030 by restoring one million hectares of land to forest.

These measures align with the country's sustainability-linked financing framework, launched in July 2025 in collaboration with the World Bank. They complement other initiatives, such as the first debt-for-development swap operation issued in early 2025.

Chamberline Moko