Global law firm Hogan Lovells has advised development banks FMO (the Dutch entrepreneurial development bank) and TDB (the Eastern and Southern African Trade and Development Bank) as joint mandated lead arrangers on a syndicated US$394 million sustainability-linked loan to ETC Group (ETG).
Established in Kenya in 1967, ETG is a global conglomerate with a strong foothold in Africa and expertise across various industries, with a focus on supply chain optimisation tailored to local requirements. The loan facility, which is the largest ever of its kind in the African agricultural sector, aims to support ETG’s working capital needs across Africa, reinforcing the company’s sustainability agenda and its role in the agricultural sector. One of ETG’s key targets is to reach one million African smallholder farmers, enhancing their production and crop quality.
The sustainability of the facility will be assessed annually against six KPIs, including no deforestation, reforestation, impact on smallholder farmers and women, and reduction of greenhouse gas emissions.
FMO and TDB are joined in the SLL by several other development finance institution (DFI) lenders, namely DEG, FinDev Canada, the Opec Fund for International Development, and Proparco. FMO Investment Management and ILX, a Dutch emerging market asset manager, are also participants in the facility.
Dubai Banking partner Rahail Ali led the team, supported by counsel Ahmet Kalafat (counsel, Banking, Dubai), Anton Sokolov (associate, Banking, Dubai) and Faysal El Ayoubi (Trainee, Dubai), with additional support from Andrew Taylor (partner, Banking, London) and Sidrah Shah (associate, Banking, London) as well as Hogan Lovells’ offices in Amsterdam and Singapore.
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