Global law firm Ashurst acted as international legal advisor to the African Development Bank on a €170 million partially credited sustainability financing facility for Mota Engil Africa, the African holding company of Mota Engil Group, one of the world’s leading engineering, procurement and construction companies. This innovative transaction marks one of the first direct partial credit guarantees from the African Development Bank to support non-sovereign debtors in Africa, opening new avenues for private capital to support infrastructure across the continent. The facility will fund a pan-African portfolio of eligible, high-impact infrastructure projects in line with the company’s sustainability-linked financing framework.
The provision of this €120 million partial credit guarantee is part of the African Development Bank’s strategy to facilitate international private financing for infrastructure development in Africa, while promoting inclusive growth, job creation and climate resilience. The projects include transportation infrastructure, environmental services, water and wastewater systems, and energy-efficient civil engineering works in more than a dozen African countries. Consistent with Mota Engil Africa’s sustainability strategy, the facility is supported by measurable key performance indicators, including goals such as improved health and safety performance, increased representation of women in management positions, and enhanced local job creation and skills development.
Solomon Quayner, Vice President for Private Sector, Infrastructure and Industrialization at the African Development Bank, said: “This signing is in line with President Tarr’s vision, which is embedded in the African Development Bank’s Four Fundamentals, to leverage guarantees to provide affordable and affordable services for African development. “This represents an important step forward in our efforts to enable critical commercial financing. In partnership with Deutsche Bank, we are financing Mota Engil Africa, which will deliver sustainable infrastructure that fosters inclusive growth, job creation and economic growth.” and resilience. ”
Partner Tom Longmuir said: “We are pleased to represent the African Development Bank in structuring and executing this large-scale partial credit guarantee for businesses and financing a portfolio of infrastructure assets across Africa. This transaction supports the African Development Bank’s objective to mobilize private capital and create additionality for impact finance and highlights Ashurst’s expertise in multilateral credit support in emerging markets.”
The African Development Bank’s Ashurst team was led by partner Tom Longmuir and senior associate Samia Kenous, and comprised senior associate Cédric Gamanbay-Dionme, and associates Orphée Jeanneau, Zoe Deleris and Lillian Decott. Lawyer Gael Cognet advised on sustainability and climate-related issues, and partner Emmanuel Cabrol advised on arbitration-related aspects.
