BOAD NH-RDB (MIGA-14735)

Countries
  • France
  • United Kingdom
Geographic location where the impacts of the investment may be experienced.
Specific Location
France, United Kingdom, and other countries yet to be identified
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 30, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Societe Generale; HSBC Bank Plc. and other Financial Institution(s) yet to be identified
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 646.10 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 600
Converted using 2024-05-03 exchange rate.
Project Cost (USD)
$ 646.10 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 600
Converted using 2024-05-03 exchange rate.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Aug 11, 2024

Disclosed by Bank May 3, 2024

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Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, this summary covers an application made to cover a proposed commercial lending facility of EUR350 million (net principal) to Banque Ouest Africaine de Developpement (BOAD) to be provided by: Societe Generale, HSBC Bank plc, and other lender(s) yet to be identified. MIGA's coverage has been sought in relation to a Non-Honoring of Sovereign Financial Obligations by a Regional Development Bank (NHFO-RDB) guarantee for up to EUR600 million and a tenor of up to 15 years.

The MIGA-guaranteed loan will support BOAD's lending operations towards climate and sustainable projects in BOAD's 8 member countries in priority sectors including Climate Smart Agriculture, Renewable Energy, Green Cities and Buildings, and Infrastructure. The MIGA guarantee would allow BOAD to attract competitive long-term financing from international lenders, ensure the unfolding of strategic projects in BOAD's member countries and helping BOAD achieve its development bank's mandate and mission to enforce the balanced development of its member countries.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The MIGA project will support direct lending for climate finance projects including renewable energy projects, agriculture projects, infrastructure projects and housing/real estate projects. These projects could have significant E&S risks impacts that are unprecedented and irreversible; as such, the MIGA project has been categorized as FI-1 in accordance with MIGA's Policy on Environmental and Social Sustainability (2013).

The main E&S aspects of this project relate to BOAD's ability to identify, assess, and manage the E&S risks and impacts associated with its lending activities and the management of labor matters at BOAD.

As of December 2023, BOAD's loan portfolio included the two main segments - sovereign loans, 75% and non-sovereign loans, 25% - across the eight member states. The main sectors supported include transportation and digital infrastructure (41%), energy and natural resources (20%), agriculture and food security (12%), financial services (12%), health and education (10%), and housing and real estate (5%). The projects within the climate finance portfolio to be supported by the MIGA-guaranteed loan include renewable energy projects, climate-smart agriculture, green buildings, and infrastructure projects. Coal-related projects and oil and gas projects will not be covered by the MIGA guarantee.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

An application made to cover a proposed commercial lending facility.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Banque Ouest Africaine de Developpement (BOAD) is the common development finance institution of the 8 member states of West African Economic and Monetary Union (WAEMU). Its primary objective is to promote balanced development of its member states and to foster economic integration within West Africa by financing priority development projects

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - BANQUE OUEST AFRICAINE DE DEVELOPPEMENT Undisclosed -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contacts available at the time of disclosure.

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.miga.org/contact/access_to_information

You can also request general information about MIGA and for information on guarantees by emailing: migainquiry@worldbank.org

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works