📋 Tender Overview
The African Development Bank Group has awarded a $400,000 grant to Benin's Ministry of Economy and Finance to enable it to diversify and increase proceeds from sustainable bond markets, to support the implementation of national development and green transition plans.
Approved on 23 July in Abidjan, the grant, from the Capital Markets Development Trust Fund, a multi-donor fund administered by the African Development Bank, will be provided in the form of technical assistance to the Ministry.
“One of the African Development Bank's priorities under its new Ten-Year Strategy 2024-2033 is to support initiatives to boost access to all funding related to sustainable development,” said Ahmed Attout, Director of the Bank Group's Financial Sector Development Department. “By backing this project, the Bank is positioning itself, both in terms of investment and technical assistance, to enable African countries to make the most of their potential with regard to sustainable development.”
The project will make it possible for Benin to update its framework for issuing bonds to finance the Sustainable Development Goals (SDGs), and to also extend this framework to thematic bonds (green, blue and social bonds). It will help to establish a national strategy for the development of sovereign thematic bonds and train stakeholders at the national level.
An additional aim of the project is to assist Benin in its efforts to put in place a long-term investment strategy for climate action, green growth, and the carbon transition, with the identification of green projects and a plan to capitalise on domestic mechanisms for raising green finance.
“Equipping the country with the capacity to analyse and structure various sustainable finance products will help Benin to raise the amount of financing needed to swiftly implement projects aligned with the SDGs, while limiting absorption-capacity constraints,” said Romuald Wadagni, Benin's Minister of Economy and Finance. “Since the inaugural issue of SDG Eurobonds, Benin has taken remarkable steps forward in terms of financial innovation, implementing green, inclusive and transformative programmes. At a time when sustainable bond markets are booming, the execution of this project is a further illustration of Benin's commitment to greater sustainability. This project will enable us to capitalise on these experiences to develop more diversified instruments.”
