BOAD EQUITY INCREASE

Projektträger – zwischengeschaltetes Finanzinstitut

BANQUE OUEST AFRICAINE DE DEVELOPPEMENT

Ort

• Regionalvorhaben - Westafrika

Beschreibung

Increase of EIB's existing 0.4% equity stake in the West African Development Bank by a direct equity investment of up to USD 28 million to reach a shareholding of at least 1% after the West African Development Bank's capital increase.

Additionality and Impact

The operation concerns an increase in EIB's existing 0.4% equity stake in BOAD (the West African Development Bank) by a direct equity investment of up to USD 28mn to reach a shareholding of at least 1% after BOAD's capital increase. Through enabling BOAD to increase its financing of projects in infrastructure, energy, agriculture and food security, real estate and education and health as well as transversal investments in Micro, Small and Medium Enterprises (MSMEs), EIB's contribution will aid towards addressing the market failures that relate to the sufficient provision of public goods like education and good health and asymmetries in access to finance for MSMEs. It will contribute to the private sector inclusive growth in Member States of the West African Economic and Monetary Union (WAEMU), with a focus on green transition. This operation is in line with the European Commission's priority to promote sustainable and inclusive growth as expressed in the Global Gateway, the Team Europe Initiatives and the relevant Regional Indicative Programs spanning 2021-2027. It is expected to contribute to EIB's objective outside the European Union for private sector development and job creation. 

EIB's contribution to BOAD's capital increase will support its external rating by raising the share of highly rated equity investors. This is important in view of BOAD's 5-year strategic plan to be implemented and to ensure a competitive source of public financing for the region.

Furthermore, EIB's involvement has a significant impact on other shareholders also considering to increase their commitment and it is expected to put in place an enhanced cooperation with other involved IFIs/DFIs, EU member states and local shareholders. It is anticipated that EIB will also have a positive influence on the policy and integrity standards of BOAD.

Ziele

The capital increase shall support the implementation of the West African Development Bank's current 5-year strategic plan and therewith ensure a competitive source of public financing for the region.

Sektor(en)

• Dienstleistungen - Erbringung von Finanz- und Versicherungsdienstleistungen

Vorgeschlagene EIB-Finanzierung (voraussichtlicher Betrag)

USD 28 million (EUR 26 million)

Gesamtkosten (voraussichtlicher Betrag)

USD 56 million (EUR 53 million)

Umweltaspekte

The West African Development Bank has an adequate environmental and social management system in place with environmental and social policies and procedures materially consistent with the World Bank Environmental and Social Framework and the relevant World Bank environmental health and safety guidelines. With emerging environment, climate and social challenges and evolving policy, EIB will require the West African Development Bank to take all the required measures to ensure that these challenges are addressed in the upcoming revision of its environmental and social framework including enhancing its Paris Alignment Framework.

Auftragsvergabe

The West African Development Bank will be requested to comply with applicable national and EU legislation, as appropriate.

Projektstatus

Unterzeichnet - 16/10/2023