- Africa Finance Corporation has financed a 66MW solar project in Côte d’Ivoire through a €65 million green bond facility.
- The project marks the first project-finance green bond in Côte d’Ivoire and the wider West African Economic and Monetary Union.
The Africa Finance Corporation (AFC) has reached financial close on a €65 million green bond facility for a 66MW solar project in Korhogo, northern Côte d’Ivoire.
AFC disbursed €43 million from the facility in April. Importantly, African institutions provided all the capital behind the transaction, which combines euro and CFA franc financing.
The transaction marks the first project-finance green bond issued in Côte d’Ivoire. It also represents the first transaction of its kind across the West African Economic and Monetary Union.
CFA Financing Reduces Currency Exposure
The facility uses both euros and CFA francs. This structure allows the project to borrow part of its financing in the currency it will use to generate revenue.
The approach can reduce foreign-exchange exposure for projects that sell electricity in local currency. As a result, developers and lenders can manage currency risks more effectively.
AFC acted as lead underwriter and co-arranger for the transaction. Meanwhile, Poro Power 1 SA, led by Ivorian group PFO Africa, will develop the solar project.
Korhogo Plant Targets 100,000 Households
The 66MW plant will operate in the Poro region of northern Côte d’Ivoire. AFC expects the facility to become the country’s largest solar plant when it enters operation in 2027.
The project could supply electricity to more than 100,000 households. In addition, AFC expects the plant to prevent more than 72,000 tonnes of carbon dioxide emissions annually.
Côte d’Ivoire aims to increase renewable energy to 45% of its electricity mix by 2030. Therefore, the Korhogo project will contribute to the country’s renewable-energy expansion.
AFC Promotes African Financing Model
AFC President and Chief Executive Samaila Zubairu described the financing structure as a model that other African markets could replicate.
The transaction demonstrates how African financial institutions can support large-scale infrastructure without relying entirely on foreign capital. Meanwhile, local-currency financing can help address currency risks that have affected infrastructure projects across West Africa.
Poro Power 1 Chairman and Chief Executive Jean-Marc Aie described the issuance as a significant milestone for Côte d’Ivoire and the wider WAEMU region.
Similar African-funded projects have also emerged elsewhere. For example, Copperbelt Energy Corporation financed the 136MW Itimpi II plant in Zambia through its own $200 million green bond.
Nigeria also listed a N47.335 billion sovereign green bond in May at 18.95% on the NGX and FMDQ. However, AFC has not announced another transaction using the Korhogo financing model since April.
Construction at Korhogo now represents the next major milestone for the project.