Natixis opens new chapter for sustainable finance out of Africa

On Thursday July 15th, Natixis had the pleasure to once again partner with the Republic of Benin as joint bookrunner & sustainable advisor for their inaugural Sustainable Development Goals (SDG) bond issuance. The results of this transaction transpired into a landmark for the region with the first ever sovereign SDG bond from Africa, highlighting the capabilities for innovation and sustainability to be replicated not only by other African issuers but for Emerging Markets on a whole.

This was a remarkable return for the issuer, who came to international capital markets with their first ever bond only two and a half years ago. The new € 500mn 12.5-year (Weighted Average Life) SDG bond was priced with a coupon of 4.95%, showing a green premium of 20 bps inside the existing curve. The issuance garnered significant attention from both European and U.S accounts, with the thematic label bringing in both granularity and quality with new investors participating on this credit.

While it is always an honor to work alongside this issuer, the ability to advise on a framework to further progress ESG objectives on an international scale and in an emerging market was a truly remarkable experience which the Green Hub and the DCM SSA teams of the Bank have been pursuing since the first transaction in this area, particularly lately for AFD, BOAD or Mexico SDG Bond.