Togo Secures €200M in Sustainable Financing with AfDB Credit Guarantee Support

In a landmark development for climate-resilient investment in West Africa, the Government of Togo and the African Development Bank Group (AfDB) have signed a partial credit guarantee (PCG) agreement aimed at mobilizing a total of €200 million in sustainable financing for green and social development projects. The innovative deal was finalized during the 2025 AfDB Annual Meetings in Abidjan, Côte d’Ivoire.

This agreement—facilitated through the African Development Fund (ADF), the concessional arm of the AfDB—signals a major milestone for Togo in its efforts to leverage international commercial finance under favorable terms while strengthening its visibility in global capital markets.

Quadrupling Financing Through Strategic Leverage

At the heart of the agreement is a strategy to leverage Togo’s ADF country performance-based allocation by four times—using a PCG to raise funds from leading institutional investors. Notably, the participating commercial lenders in this operation include Legal & General (L&G) and Deutsche Bank, with the AfDB serving as lead arranger.

“This innovative operation is the result of the strategic guidance provided by His Excellency Faure Essozimna Gnassingbé,” said Essowè Georges Barcola, Togo’s Minister of Economy and Finance. “By securing this 20-year sustainable loan, we are sending a strong signal to international investors about the strength of our economic governance, financial credibility, and commitment to the SDGs.”

The PCG agreement will enable long-term financing at competitive rates, expanding Togo’s ability to invest in transformative green and social sectors.

Investment in Climate and Social Priorities

The funds mobilized will be dedicated to climate adaptation, biodiversity preservation, pollution control, sustainable agriculture, and clean energy access. These priority areas are directly aligned with Togo’s 2020–2025 Government Roadmap and its Sustainable Financing Framework, which emphasize inclusive growth and climate resilience.

According to Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure and Industrialization, “This transaction marks a significant milestone in Togo’s sustainable development journey. By leveraging the Fund’s guarantee products, Togo is not only accessing long-term, affordable capital but also enhancing its visibility among international investors.”

Pioneering Partnerships with Institutional Investors

A key feature of this operation is the involvement of Legal & General (L&G), a UK-based financial services giant, which becomes the first non-bank commercial institutional investor to partner with the ADF through such a transaction.

Jake Harper, Senior Investment Manager at L&G, noted, “Channeling debt financing for sustainable outcomes will generate momentum towards bridging the $4 trillion annual SDG funding gap. These transactions and innovative financing methods are combating the historic risk-return misperception and demonstrating the compelling investment opportunity for institutional investors.”

Deutsche Bank, a longtime financial partner to emerging economies, also played a critical role. Maryam Khosrowshahi, Managing Director and Head of Sub-Saharan Africa Coverage at Deutsche Bank, said, “We are extremely honored to have been selected to work on this landmark inaugural exercise. This is a prime example of how we can deliver long-term funding efficiently in support of critical green and social projects.”

A Model for Future Financing

The agreement comes as the ADF enters the final phase of its 17th replenishment cycle (ADF-17), marking a shift toward innovative, market-based instruments that allow low-income countries to attract larger volumes of financing beyond their performance-based quotas.

“This transaction also showcases the innovative use of the ADF guarantee to increase financing volumes available for low-income countries,” said Hassatou N’Sele, AfDB Vice President and Chief Financial Officer. “It marks the first use of the Guarantor-of-Record structure with the ADF sharing a portion of the guarantee exposure with highly rated credit insurance partners.”

The structure not only protects investors but also broadens the ADF’s toolkit, enabling it to act as a credible guarantor to unlock large-scale funding flows into Africa’s lowest-income economies.

Looking Ahead

Togo’s successful arrangement with the AfDB may now serve as a blueprint for other African countries seeking sustainable financing through global capital markets. The agreement is part of a broader AfDB initiative to help regional member countries access commercial finance while pursuing climate-smart and inclusive development goals.

As global momentum grows to bridge the sustainable development funding gap, the Togo-AfDB partnership highlights how multilateral institutions and private investors can collaborate to deliver transformational impact where it is most urgently needed.