The Bank of Industry (BOI) and the French Development Agency (AFD) are pleased to announce that they built a partnership for a €100mn credit line for the expansion of green finance in Nigeria.
The transaction was approved by AFD under its Transforming Financial Systems for Climate (TFSC) Program with the Green Climate Fund (GCF). The TFSC is a USD650mn-Program developed in 17 countries for 100% climate investment projects.
The credit facility will focus on financing investments that contribute to climate change mitigation or adaptation, specifically projects focused on renewable energy, low carbon and efficient energy generation, climate-smart agriculture technologies, clean urban transportation, and others.
“This is the beginning of a long-term mutually beneficial relationship and a significant step for BOI as we scale up our green-lending capacity. Given the serious threat that climate change poses to equitable and sustainable development in Nigeria. It is critical for us at BOI to take the lead in mobilizing capital for green and sustainable investment” said Mr. Olukayode Pitan, Managing Director/Chief Executive Officer, Bank of Industry, at the credit agreement signing ceremony which took place at the BOI head office in Lagos.
Mr. Xavier Muron, Country director for AFD, highlighted the importance of such a project in the framework of the fight against climate change globally. He added that this new credit line is a key milestone toward the achievement of the Paris Agreement. This Program is timely since Nigeria is looking forward to launching its Energy Transition Plan.
The financing package will also include a €2.5mn grant facility dedicated to a technical assistance program aimed at mainstreaming Climate Finance within BOI’s strategy and operations. It will support capacity building for BOI and its customers, thereby providing tools for the effective identification and development of eligible bankable climate-related projects as well as improving the readiness of the bank’s customers to implement green practices in their operations.
This transaction also highlights both AFD’s and BOI’s longstanding commitment to achieving the UN’s Sustainable Development Goals (SDGs). BOI operates under a robust Environment and Social Governance (ESG) framework that has been integrated into its operations with a monitoring and reporting system.