AfDB Approves XOF 15bn Social Bond Support to Expand Electricity Access in Côte d’Ivoire

Launched in 2014, the PEPT programme addresses one of the biggest barriers to electricity access—high connection costs.

The Board of Directors of the African Development Bank Group (AfDB) has approved up to XOF 15 billion (EUR 22.9 million) in financing to support Phase II of Côte d’Ivoire’s Programme Électricité Pour Tous (PEPT)—a national initiative aimed at making electricity connections affordable for low-income households. The approval, made on 15 October 2025, marks a major milestone in accelerating universal access to modern energy across the country.

The financing package includes:

• EUR 16 million from the African Development Bank

• EUR 6.9 million from the Sustainable Energy Fund for Africa (SEFA)

This transaction represents the first-ever AfDB subscription to a local currency social bond within the West African Economic and Monetary Union (WAEMU) region—signaling a strong commitment to mobilizing regional capital markets for inclusive energy development.

Bringing Electricity to 2.2 Million People

Phase II of the PEPT programme will fund the installation of 400,000 new electricity connections between 2025 and 2026, benefiting an estimated 2.2 million people, with 35% of them living in rural communities. The initiative is a cornerstone of Mission 300, AfDB’s ambitious plan to deliver electricity access to 300 million Africans by 2030.

Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth, underscored the innovation behind the financing model:

“This innovative social bond structure exemplifies how the Bank is deploying creative financing solutions to achieve universal energy access. By mobilizing capital markets and making electricity connections affordable for low-income households, we are powering economic transformation and improving lives across Côte d’Ivoire.”

Making Electricity Affordable Through an Inclusive Financing Model

Launched in 2014, the PEPT programme addresses one of the biggest barriers to electricity access—high connection costs. The programme reduces upfront fees for eligible low-income households and small businesses:

• From XOF 150,000

• To XOF 1,000 upfront

• With the remaining balance repaid over 2 to 10 years through electricity bills

This flexible, pay-as-you-go model has already helped hundreds of thousands of Ivorian families access reliable electricity for the first time.

Structure of the Social Bond

The XOF 60 billion social bond supporting PEPT Phase II is structured into three tranches:

• Tranche A: 7-year maturity

• Tranche B: 10-year maturity

• Tranche C: 15-year maturity

The securitization vehicle is managed by Africa Link Capital Titrisation (ALC Titrisation), with the transaction arranged by Africa Link Capital Structuration (ALC Structuration).

On 17 October, AfDB—alongside the Emerging Africa & Asia Infrastructure Fund (EAAIF) (backed by an IFC guarantee) and Norfund—anchored key portions of the bond, helping catalyze interest from local institutional investors.

A Landmark Transaction for Sustainable Finance in West Africa

Ahmed Attout, Director of AfDB’s Financial Sector Development Department, described the transaction as transformative:

“This landmark transaction marks a major step in advancing the use of green, social, and sustainability instruments within the BRVM market. The Bank is proud to collaborate with development finance institutions and local investors to foster a sustained flow of sustainable financing across the continent.”

The bond is expected to deepen regional capital market integration, scale up sustainable finance options, and mobilize new pools of capital to support social infrastructure across West Africa.

Accelerating Electrification Under Mission 300

Wale Shonibare, Director of Energy Financial Solutions, Policy, and Regulations at AfDB, emphasized the project’s importance under Mission 300:

“By connecting over 400,000 households, we are showcasing how market-based financing can accelerate electrification at the scale and speed needed to reach 300 million people.”

The project represents a new standard for innovative energy financing, demonstrating how social bond mechanisms can directly support national electrification efforts while empowering communities, boosting economic activity, and improving living conditions.