Montreal, 21 November 2024 – Today, FinDev Canada, Canada’s bilateral Development Finance Institution, FMO, the Dutch entrepreneurial development Bank, TDB, Eastern and Southern African Trade & Development Bank, and other lenders announce the signing of a syndicated US$ 394 million Sustainability-Linked Loan (“SLL”) to ETC Group (“ETG” or the “Company”), a global conglomerate with a strong foothold in Africa and expertise across various industries. This significant financial commitment aims to support ETG’s working capital needs across Africa, reinforcing the company’s sustainability agenda and its pivotal role in the agricultural sector.
FinDev Canada will be contributing up to US$ 75 million as part of the syndicated facility, arranged by FMO and TDB. In addition to FinDev Canada, FMO, and TDB, other syndication partners include DEG, the German development finance institution, OPEC Fund for International Development, and Proparco, a subsidiary of the Agence Française de Développement Group, (together “the Lenders”). Additional partners include FMO Investment Management and ILX Fund, an emerging market focused private credit fund.
An SLL is a type of loan designed to incentivize the borrower to achieve specific sustainability performance targets. Overall, SLLs are a powerful tool for companies to demonstrate their commitment to sustainability while accessing favorable financing terms. By collaborating with other DFIs and impact investors, the Lenders aim to support and motivate ETG in achieving its sustainability goals, ultimately contributing to a more resilient and sustainable agricultural sector in Africa. One of ETG’s key targets is to reach one million African smallholder farmers, enhancing their production and crop quality.
Established in 1967 in Kenya, ETG has evolved into a global player across various industries, with a focus on supply chain optimization tailored to local requirements. With its roots deeply embedded in Africa, the group has made significant contributions to the development of local African economies.
The Company has been a valued client of FinDev Canada since 2021, consistently demonstrating a strong commitment to environmental and social standards and sustainability.
“Despite significant and rapid growth over the years, ETG’s commitment to the African continent remains steadfast. We are humbled to partner with institutions that enable us to truly make an impact in the lives of people, whilst keeping a keen focus on addressing pressing issues pertaining to climate change and land conservation. We are enthused to continue this journey and to play our role in creating a sustainable future for generations to come,” said Paul Van Spaendonk, Treasury Chief at ETG.
“We are proud to be the arranger of this innovative and syndicated loan, the largest ever of its kind in the African agricultural sector. Few organizations have such a broad influence on African smallholders as ETG, providing them with market access and technical assistance to enhance yield quality. We thank ETG and our investment partners for their trust and cooperation in making this happen. We hope ETG will lead by example, inspiring other multinationals to underpin their sustainability targets with a sustainability linked loan,” stated Fatou Bouaré, Chief Finance and Operations Officer and key-account holder for ETG at FMO.
“TDB is pleased to serve as co-arranger alongside FMO, as well as facility agent on this groundbreaking sustainability-linked loan for ETG, a longstanding client of the Bank. Since 2016, the Bank has financed over US$ 350 million via several types of facilities for ETG which have served to support food security in the region and accelerate sustainable and responsible practices,’’ said Michael Awori, Trade and Development Business Chief Executive at TDB.
“This transaction with ETG is a significant step forward in partnering to advance sustainable agriculture in Africa. We’re proud to collaborate with dedicated partners who share our commitment to driving impact and building a more resilient, sustainable food system. Together, we are supporting smallholder farmers and working to reduce the gender gap, driving inclusive growth across the agricultural sector,” said Paulo Martelli, VP and Chief Investment Officer at FinDev Canada.
Read more about ETG’s sustainability-linked loan here: a groundbreaking deal, the future of finance in African agriculture.
About FinDev Canada
FinDev Canada is Canada’s bilateral Development Finance Institution (DFI), supporting development through the private sector. We provide financing, investment, and blended finance solutions, as well as technical assistance and knowledge, to promote sustainable and inclusive growth in emerging markets and developing economies (EMDEs), in alignment with the Sustainable Development Goals (SDGs) and Paris Agreement commitments. FinDev Canada is a wholly owned subsidiary of Export Development Canada (EDC). Find out more about FinDev Canada at www.findevcanada.ca.
About FMO
FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a 50+ year proven track-record in empowering entrepreneurs to make local economies more inclusive, productive, resilient and sustainable. FMO focuses on three sectors that have high development impact: Agribusiness, Food & Water, Energy, and Financial Institutions. With a total committed portfolio of EUR ~13 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. For more information: please visit www.fmo.nl
About TDB
Established in 1985, the Eastern and Southern African Trade and Development Bank (TDB) is an investment-grade African regional development finance group, with the mandate to finance and foster trade, regional economic integration and sustainable development. With an asset base of USD 10 billion, TDB Group has 25 African member states, which alongside non-regional member countries and institutional investors from Africa, Europe and Asia, form TDB's community of shareholders.
TDB Group counts several subsidiaries and strategic business units including Trade and Development Banking, TDB Asset Management (TAM), Trade and Development Fund (TDF), TDB Captive Insurance Company (TCI), the ESATAL fund management company and TDB Academy. www.tdbgroup.org
About ETG
ETG has developed into a global player with a presence in more than 45 countries, spanning 6 continents. The Group has a diverse portfolio of expertise across various industries, encompassing agricultural inputs, chemicals, logistics, processing, food and food ingredients, energy, metals, technology and supply chain optimization. Over 35000 employees and contractors contribute every day to achieve our vision and purpose, and live our values of Respect, Integrity, Pursuit of Excellence, Leadership and Meritocracy. ETG’s verticals are structured in a manner to emphasize focus and optimize strategic growth opportunities. We adapt and grow responsibly as a diversified enterprise, creating a sustainable future for all our stakeholders.
Media Contacts
FinDev Canada: media@findevcanada.ca
FMO: m.beek@fmo.nl