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Orabank

Posted

December 2022

Sector

Multi-sector

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GuarantCo provided Orabank C么te 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.

Orabank CDI

Transaction benefits

GuarantCo provided Orabank聽C么te d’Ivoire聽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鈥檚 first transaction in聽C么te d’Ivoire and its second with聽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.

Development benefits

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. 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.