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December 1, 2022

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


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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.
Layth Al-Falaki
CEO of GuarantCo

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.

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