The Africa Finance Corporation (AFC) and Intercontinental Investment Bank, S.A. (iib West Africa) today announced the signing of a Memorandum of Understanding (MoU) in Washington, D.C. The agreement establishes the framework for a term loan facility of up to €50,000,000, intended to finance the underwriting and subscription of a sovereign-guaranteed green bond to be issued by Empresa de Distribuição de Eletricidade de Cabo Verde (EDEC), marking a significant milestone in sustainable infrastructure financing on the African continent.
The signing ceremony will be attended by high-level government representatives from Cabo Verde, including the Deputy Prime Minister and Minister of Finance, H.E. Olavo Avelino Garcia Correia, reflecting the commitment of both institutions, as well as the Government of Cabo Verde, to advancing sustainable development and green energy solutions in the country and across Africa.
Strategic MoU: Laying the Foundations for a Long-Term Partnership
The MoU for the finance facility, between iib West Africa and AFC, establishes the foundation for a strategic partnership, focusing on the closer cooperation of both institutions to build a strategic partnership in jointly supporting and financing key infrastructure initiatives in Africa.
This MoU is designed to enable the structuring and eventual issuance of a sustainable bond for EDEC, the Cabo Verde Electricity and Water Company, with the overarching aim of supporting the country’s energy transition and advancing its pathway toward a greener, more resilient economy.
Supporting EDEC and Cabo Verde’s Energy Future
The proceeds of the Bond will be used to deliver tangible impact across Cabo Verde’s energy sector. Key objectives include:
- Improving generation and strengthening EDEC’s operational capacity in energy production and distribution;
- Implementing targeted measures to reduce losses in the electricity distribution network;
- Increasing access to electricity in the country and increasing overall energy efficiency across the archipelago.
Together, AFC and iib West Africa aim to foster innovative and sustainable financing solutions that are aligned with the strategic needs of Cabo Verde’s energy sector, contributing to its long-term modernisation and development.
Speaking at the ceremony, Sohail Sultan, Chairman, iibGroup, said, “This signing represents a defining moment not only for our institutions, but for the people of Cabo Verde and the broader African continent. At iib, we believe that the future of sustainable development lies in forging partnerships that combine multilateral expertise with on-the-ground commitment. The Sovereign-Guaranteed EDEC Green Bond aims to channel international capital directly into the energy infrastructure that communities depend on. We are proud to stand alongside AFC in this endeavour, and we look forward to deepening our collaboration through this MoU.”
"The signing of this MoU represents the first step toward a partnership that aims to bridge Africa’s infrastructure gap through innovative climate finance. By establishing a framework to consider Cabo Verde’s upcoming sovereign-guaranteed green bond, we hope to facilitate the liquidity necessary to modernize the national power grid and support the transition to renewable energy. We look forward to working closely with the Government of Cabo Verde and iib West Africa to finalize this transaction,” said Banji Fehintola, Executive Board Member, Head Financial Services, AFC.
About iibGroup Holdings W.L.L. (Bahrain)
iibGroup is a diversified international investment and banking group with operations across East Africa, the Middle East, West Africa, and the Caribbean. The Group provides banking, investment, and advisory solutions while also deploying capital into high-impact sectors such as trade, digital infrastructure, and financial inclusion. Through its regional platforms, iibGroup supports SMEs, empowers women- and youth-led enterprises, and channels capital to industries that strengthen regional integration and sustainable growth across emerging markets. For more information, visit www.iibanks.com.
About iib West Africa (Cabo Verde)
iib West Africa is a licensed banking institution based in Cabo Verde, serving corporate and institutional clients across the African continent. The bank is committed to advancing financial inclusion, innovation, and private sector development in the region. For more information, visit www.iibanks.com/westafrica
About Africa Finance Corporation (AFC)
AFC was established in 2007 to be the catalyst for pragmatic infrastructure and industrial investments across Africa. AFC’s approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth.
Eighteen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in the core infrastructure sectors of energy, natural resources, heavy industry, transport, and telecommunications. AFC has 48 member countries and has invested over $19 billion (USD) in 36 African countries since its inception. www.africafc.org
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