African Export-Import Bank (Afreximbank), entered into cooperation with Aenergy, to develop a low carbon sustainable economy, and a climate finance strategy to support projects and national initiatives in the sector across Africa.
The cooperation agreement, signed on the sidelines of the Afreximbank Annual Meetings and 25th Anniversary celebrations on Saturday, will support trade, and promote low carbon technologies by attracting financing and specialised resources for energy generation, mainly for the renewable, and transportation sectors. It will also develop investment funds such as the African Innovation Climate Fund; and enable Afreximbank to be the first multilateral bank in Africa to issue green bonds in partnership with top tier stock exchange platforms.
Speaking during the signing ceremony, the Executive Vice President, Business Development and Corporate Banking, at Afreximbank, Amr Kamel, said the facility is a huge opportunity for climate finance for African countries. “It will create value from environmental assets and promote emissions of green bonds to support African governments and African companies in their pursuit of infrastructure investments and will sustain their social and economic development.”
The Global Head, Climate and Social Finance, Aenergy, Divaldo Rezende, said: “with Aenergy’s over 15 years’ experience in the climate change sector, the agreement was an opportunity pipeline that may enable it to issue at least $850million in green bonds in the next five years, given its experience in the space and Afreximbank’s capacity to leverage African participation in innovative financial mechanisms.”
In 2017, multilateral development banks made commitments totalling $35.5billion for climate finance, with Africa receiving only $2.3billion or less than one per cent. In the context of fighting climate change and achieving the Sustainable Development Goals, green bonds are considered strategic to the development of a low carbon economy in Africa.
Participating from Afreximbank in the discussions leading up to the agreement were: Director, Advisory and Capital Markets (ACMA), Ibrahim Sagna; Director, Legal Services, Samallie Kiyingi; representative, Research and International Cooperation Department, Dr. Christiane Abu Lehaf; representative, Legal Services Department, Joy Albright; and Peter Zulu of ACMA.
Aenergy was represented by the Co Chief Executive Officer, Jorge Neto Morgado; Chief Operating Officer, Pedro Bento Bento, and Mr. Rezende.