GuarantCo provides Orabank Côte d’Ivoire with a XOF 10 billion (c. USD 15 million) portfolio guarantee to invest in infrastructure

  • Date written
  • December, 2022

  • First GuarantCo transaction in Côte d'Ivoire
  • Second GuarantCo transaction with Oragroup in West Africa


GuarantCo, part of the Private Infrastructure Development Group (PIDG), has provided Orabank Côte d’Ivoire with a five-year, XOF 10 billion (c. USD 15 million) portfolio guarantee to enable the bank to grow its infrastructure-related portfolio across the region. It is GuarantCo’s first transaction in Côte d’Ivoire and its second with Oragroup, after providing a XOF 14.55 billion (c. USD 25 million) portfolio guarantee to Orabank Togo (an Oragroup subsidiary) in January 2022.

In the West African Economic Monetary Union (WAEMU) countries*, the implementation of Basel II and III banking regulations have limited the lending capacity of banks to infrastructure projects.  The portfolio guarantee will help Orabank achieve capital relief, increase their lending capacity, and comply with single obligor limits. GuarantCo expects this transaction to be replicated with other lenders to ensure that infrastructure project financing is not compromised whilst necessary prudential safeguards are implemented.

This transaction will unlock greater access to capital for agri-businesses, manufacturing, trade and logistic firms and telecommunication providers delivering economic growth and job creation supporting SDG 9 and SDG 8.5. A Paris Alignment screen will be conducted for all underlying transactions as part of the guarantee and we will continue to work with Orabank on developing their climate change strategy.

Layth Al-Falaki, CEO of GuarantCo, said:

“We are delighted to have closed our first transaction in Côte d’Ivoire and our second with Oragroup in West Africa. The guarantee that we have provided will support the development of essential infrastructure projects from which the Ivorian people will obtain significant benefit. The increase in infrastructure project financing unlocked from our portfolio guarantee, combined with volumes from potential similar guarantees replicating this transaction in the region, will lead to a critical and much needed infrastructure improvement.” 

Losseni DIABATE, Managing Director of Orabank Côte d’Ivoire declared:

Orabank Côte d’Ivoire welcomes this partnership with GuarantCo relating to a loan portfolio guarantee of 10 billion FCFA (approximately 15 million USD) to strengthen the capacities of SMEs and SMIs and support the implementation of infrastructure projects. Indeed, GuarantCo could not have found a better partner in the West African region, particularly in Côte d’Ivoire, Mali, Burkina, Senegal, Guinea Bissau and Niger, than Orabank, whose purpose remains to support all initiatives contributing to a positive transformation in Africa. In our booming economies, this type of partnership to strengthen the structuring of financing is essential to boost the development of SMEs-SMIs, real levers of economic development and employability, and thus enable credit institutions and financial institutions to better support national development plans.

* West African Economic and Monetary Union (WAEMU) countries: Senegal, Togo, Burkina Faso, Mali, Benin, the Niger and Côte d’Ivoire.


About GuarantCo

GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of the Private Infrastructure Development Group (PIDG) and is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, France through a stand-by facility and Global Affairs Canada through a repayable facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s. GuarantCo’s activities are managed by GuarantCo Management Company which is part of Cardano Development

About PIDG

The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of opportunity, accountability, safety, integrity and impact. Since 2002, PIDG has supported 190 infrastructure projects to financial close which provided an estimated 220 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany and the IFC. PIDG TA can provide technical assistance and capital grants to the PIDG companies to meet a range of needs associated with an infrastructure project’s life-cycle. PIDG TA can also provide up-front viability gap funding grants to support PIDG projects that require concessional funding to make a project with strong development impact financeable

About Orabank

Orabank Côte d’Ivoire and branches, a banking institution established in 6 countries that are Côte d’Ivoire, Mali, Burkina, Senegal, Niger, Guinea Bissau, is a subsidiary of the private pan-African banking group present in 12 countries and 4 monetary zones in West and Central Africa and strongly involved in the local economy of the countries in which it operates through its commercial banking business. Orabank Cote d’Ivoire and branches is a universal bank serving the State, Large Companies, SMEs, Professionals, VSEs and Individuals, recognized in its various branches as a modern and dynamic bank. It has built its notoriety through the financing of SMEs whose total outstanding jobs amounted to more than 200 billion FCFA at the end of December 2021. However, it makes it a point of honor to support all actors in the fabric economic regardless of their size and the nature of their activities.