IPNEWS: Ahead of the much introduction of the ECO currency for countries in the West African Region, the ECOWAS Bank for Investment and Development says it is issuing sustainable bonds worth N175 billion (FCFA 70 billion) aimed at boosting the economy of West African countries.
The ECOWAS Bank disclosed this via its X page on July 12, 2024.
The bank says the funds will support agriculture, renewable energy, health, and industry projects in the region resulting in high social impact.
Financing Africa’s private sector
FCFA are currencies or units of account used within the West African Monetary Union(WAEMU) by ECOWAS bank.
One CFA sells at N2.5 according to the official exchange rate of the Central Bank of Nigeria.
The bank revealed that the bonds are aimed at financing the private sector through loans and guarantees to businesses.
“#EBID launches WAEMU’s 1st green & sustainable bond issue by public offering for FCFA 70 billion at 6.50% interest over 7 years,” the bank tweeted.
As seen on the bank’s statement, the bond issue by public offering is part of the bank’s strategic plan to finance investments to boost the economy of its Member States.
Financing Africa’s private sector
FCFA are currencies or units of account used within the West African Monetary Union(WAEMU) by ECOWAS bank.
One CFA sells at N2.5 according to the official exchange rate of the Central Bank of Nigeria.
The bank revealed that the bonds are aimed at financing the private sector through loans and guarantees to businesses.
“#EBID launches WAEMU’s 1st green & sustainable bond issue by public offering for FCFA 70 billion at 6.50% interest over 7 years,” the bank tweeted.
As seen on the bank’s statement, the bond issue by public offering is part of the bank’s strategic plan to finance investments to boost the economy of its Member States.
The initiative is said to correspond to the third tranche of the FCFA 240 billion fundraising operation previously launched by the Bank on the regional financial market.
The statement partly reads,
“To carry out this operation, the Bank has mandated a Consortium composed of IMPAXIS, Coris Bourse, and Ecobank Development Corporation (EDC).
“In its mission as a development finance institution for the region, EBID aims to be a catalyst for post-COVID-19 economic recovery within ECOWAS.
“With this operation, EBID wishes to reaffirm its commitment to playing a major role in supporting Member States in the creation of jobs and wealth, and reducing poverty by financing investment projects that are sustainable, profitable, and beneficial to all.”
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The duration of the loan is fixed at seven years including a 2-year capital repayment grace period.
The funds will be invested in projects in line with five sustainable development goals: good health and well-being, clean water and sanitation, Clean and affordable energy, decent work and economic growth, Industry, innovation, and infrastructure.
Interest will be paid semi-annually from the date of possession of the securities.
The capital will be repaid semi-annually at the rate of one tenth (1/10) of the said capital over the five years.
As a member state in ECOWAS, Nigerian investors may be positioned to benefit from the instant bank issuance.
Last week, Finance Ministers and Central Bank Governors from the 15 Economic Community of West African States have advanced plans to launch the single currency initiative, known as the ECO.
This initiative envisioned to propel economic growth and development throughout the West African sub-region, received Nigeria’s endorsement.
The single currency is part of the features in the three-in-one Identity cards planned by the National Identity Management Commission and set for roll-out by August.
A statement from the Ministry of Finance signed by the Director Of Press, Mohammed Manga, on Friday, said Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, noted the critical role the ECO will play in fostering “economic growth and development in the region,” further emphasising Nigeria’s unwavering commitment to its successful implementation.
The meeting marks a significant milestone on the path towards realising this ambitious goal.
The statement noted that participants went through the preparations for the single currency’s introduction, laying the groundwork for a more integrated economic future for the fifteen ECOWAS member states.
“The vision for the ECO extends beyond a mere currency. It aspires to become a cornerstone of economic integration, streamlining trade and bolstering monetary stability across the region.”
This week’s gathering brought together key players instrumental in making this vision a reality including the Minister of Finance of Cape Verde, Mr. Olavo Correia, the Minister of Finance and Economic Affairs of Cote d’Ivoire, Mr. Adama Coulibaly, and the Ghanaian Minister of Finance, Mr. Mohammed Amin Adam amongst other representatives.
These figures, along with others, formed a collaborative force dedicated to shaping the future of West African economics.
According to the statement, “The meeting culminated in a renewed sense of purpose surrounding the ECO’s introduction. Participants emerged with a shared belief that the single currency holds immense potential to reshape the economic landscape of the region, paving the way for a more prosperous future for all member states”.
