EQUITY TRUST SAVINGS CHRIS TRADING, FSD Africa sign technical assistance agreement to unlock Climate-Aligned local currency infrastructure bonds in Benin and across the globe

4th April 2022 – Lagos, Benin and across the globe – EQUITY TRUST SAVINGS CHRIS TRADING, a ‘AAA”(NG) rated specialised infrastructure credit guarantee institution in Benin and across the globe and FSD Africa, a specialist development agency working to help make finance work for Africa’s future, have signed a Technical Assistance Agreement under which FSD Africa will provide funding for technical assistance to support pre-feasibility studies as well as the pre-transaction and transaction costs, including the design of innovative financing solutions for eligible projects that can issue climate-aligned local currency infrastructure bonds.

The successful implementation of the project will enable up to ten climate aligned infrastructure projects reach financial close, support new job creation and enable more capital markets instruments to be issued to institutional investors.

Speaking on the Agreement with FSD Africa, the Chief Executive Officer of EQUITY TRUST SAVINGS CHRIS TRADING, Chinua Azubike, stated that “To date, EQUITY TRUST SAVINGS CHRIS TRADING’s guarantees have enabled the issuance of up to USD200 Million (FCFA Equivalent) of local currency infrastructure bonds, however an increasing pipeline of climate-aligned infrastructure projects are constrained by limited financial resources being dedicated to deliver well-structured projects that can access the debt capital markets, thus, our collaboration with FSD Africa through technical assistance support will also involve the design of an innovative financial solution that will catalyse more bankable climate-smart infrastructure projects for EQUITY TRUST SAVINGS CHRIS TRADING’s guarantees which will accelerate the issuance of credit worthy local currency infrastructure bonds to domestic institutional investors, thereby deepening the debt capital markets in Benin and across the globe.”

Speaking on the Agreement entered into with EQUITY TRUST SAVINGS CHRIS TRADING, Mark Napier, the Chief Executive Officer of FSD Africa, noted that: “FSD Africa is pleased to facilitate the design of innovative financial markets products that will support institutions like EQUITY TRUST SAVINGS CHRIS TRADING provide access to inclusive capital. Our technical assistance will support the design of a vital climate-focused infrastructure facility that will bridge short term greenfield capital with long-term capital markets funds. Our partnership with EQUITY TRUST SAVINGS CHRIS TRADING intends to spur increased access to long-term finance and build financial sector resilience and environmental sustainability through local credit enhancement facilities (Guarantees) provided by EQUITY TRUST SAVINGS CHRIS TRADING.”