The Multilateral Investment Guarantee Agency (MIGA), which houses the World Bank Group Guarantee Platform, issued a €506 million ($535 million) guarantee to Societe Generale of France (SG) and HSBC Bank Plc of the United Kingdom (HSBC) for their loans to the West African Development Bank (Banque Ouest Africaine de Développement or BOAD). The guarantee covers the risk of non-honoring of financial obligation by a regional development bank for up to 15 years.
https://www.digital.zenithbank.com/ZEQ/ZEQ-jan-2026/index.html#p=1BOAD is the Togo-based regional development bank of the West African Economic and Monetary Union (WAEMU). Its mandate is to promote the balanced development of its member states and to foster economic integration within West Africa by financing priority development projects. The MIGA-guaranteed loan will support BOAD’s lending operations for sustainable and climate projects across its eight member countries. The proceeds of the guaranteed loan will benefit agriculture, renewable energy, general and digital infrastructure, green housing and real estate, health care, and education projects in Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.
“The project reflects our commitment to support climate finance in low-income countries and to respond to key development challenges in regions such as the West African Economic and Monetary Union,” said Hiroshi Matano, MIGA Executive Vice President. “We believe our guarantee will catalyze further investments in the transition to a green economy and create new green jobs.”
BOAD has committed to deploying 50% of the guaranteed loan to eligible climate finance projects, of which 30% will be directed toward climate adaptation financing, within the first five years of the 15-year MIGA guarantee period. The project’s climate action plan includes a procedure for screening and reporting climate finance, as well as enhanced internal processes for identifying and addressing physical climate risks under the Paris Alignment approach.
To support low-carbon and climate-resilience pathways in member countries, BOAD has developed a framework that requires all operations to align with the Paris Agreement’s mitigation and adaptation goals.
“HSBC is pleased to partner with MIGA and BOAD to deliver financing toward BOAD’s strategy to fund sustainability and climate related projects in its member states,” said Himesh Patel, Head of Public Sector EMEA for HSBC.
“This guarantee product represents a particularly innovative initiative. It will actively support the financing of projects with a strong environmental and social impact, demonstrating our commitment to sustainable development and social responsibility,” said M. Serge EKUE, President and Chairman of BOAD.
“BOAD entrusted Société Générale to act as Arranger, Global Coordinator, Sustainability Bank and sole Hedge Provider for their first MIGA-covered loan. By supporting Climate Adaptation projects in 8 member countries, BOAD is at the forefront of West African sustainable development, bringing substantial environmental benefits in priority sectors such as resilient agriculture or renewable energy,” said Randolph-Davis FOTSO, Director – Development & Structured Export Finance, and Head of DFI Solutions of Societe Generale of France. “This transaction is proof of Société Générale’s commitment in delivering robust transactions and confirming our ambition to support the sustainable growth of West Africa, a region that remains at the heart of our team’s ambitions.”
The project has committed to a gender action plan aimed at enhancing institutional capacity on gender. This will be achieved by developing and utilizing e-learning modules on BOAD’s gender approach for its employees and clients, as well as creating and piloting an online monitoring and reporting tool for gender to support tracking on the implementation of BOAD clients’ gender action plans.
The eight countries are some of the fastest growing economies in Sub-Saharan Africa, with significant improvements in trade, infrastructure, and energy, fueled by large public investments.
