Participate in infrastructure financing

Participate in infrastructure financing

Whether from its European bases or through its 19 locations on the African continent, Societe Generale Group is deeply involved in financing infrastructure in Africa.

The bank is the world's leading exporter of finance to Africa in 2017 and the first half of 2018 (source TXF), and the leading French bank financing infrastructure in Africa. Infrastructures cover several sectors: Energy, Transport, Telecoms networks, Environment, and Health.

some concrete examples:

  • In Senegal, Societe Generale has arranged a € 226 million buyer loan for the construction of 18 bridges. This project will open up several regions of the country, improve transport and reduce CO2 emissions.
  • In Cameroon, the bank is financial advisor to the consortium formed by EDF, the IFC and the Government of Cameroon, which promotes the construction of the Nachtigal hydroelectric power station, a project of more than 1 billion euros financed by a fortnight of international and local institutions. Societe Generale also acts as coordinator of the local financing tranche. The Nachtigal power station will represent at its completion more than 30% of the installed electrical capacity of the country.
  • In Côte d'Ivoire, the bank is working with the government and the West African Development Bank (BOAD) on the financing of a large reprocessing plant to supply drinking water to part of the city of Abidjan, amounting to nearly € 250 million.
  • In the field of renewable energies, Societe Generale is currently working in Côte d'Ivoire alongside EDF, OGE and Meridiam on the financing of solar kits that will enable several hundred thousand households to have access to electricity, using a clean energy source.
  • In Morocco, Societe Generale actively supports infrastructure investments made by the Offices, whether in rail transport (ONCF) or in the water sector (ONEE).

Infrastructure financing is a key factor in Africa's development, and Societe Generale intends to further increase its contribution, in particular by increasing the number of staff dedicated to structured financing in Africa from 30 to 40 by the end of 2019, and by to grow by 20% over three years its financial commitments related to structured financing in Africa, including infrastructure financing.

It is in this perspective that the Group's approach is to work and reflect with local, regional and international financial partners, on solutions to widen the universe of financing:

  • find new sources of financing in local currency,
  • extend the maturity of these financings by raising credits,
  • put in place structures to free themselves from sovereign guarantees,
  • contribute to the deployment of new products offered by investment funds or development agencies..

The West African Development Bank (BOAD), the French Development Agency (AFD) or Meridiam are already partners with whom Société Générale works in this context.

Discussions with other institutions sharing the same ambition are underway. This is particularly the case with the African Development Bank (AfDB), the pan-African banking group ABSA, and the pan-African infrastructure investment platform Africa 50.