Property developer Emergence Plaza is launching a 10 billion CFA franc green bond, more than 15.2 million euros. This transaction, the first of its kind in West Africa, aims to refinance its real estate project in the district of Abidjan in Ivory Coast. The project is Cosmos Yopougon, a shopping complex inaugurated on November 22nd, 2018.
The shopping centre, which covers 3 hectares, has obtained Excellence in Design for Greater Efficiencies (EDGE) certification. This certification system set up by the International Finance Corporation (IFC), the subsidiary of the World Bank Group, aims to make buildings more resource efficient. EDGE makes it possible for emerging markets like Ivory Coast to implement green buildings quickly, easily and affordably.
Refinancing Emergence Plaza’s debt
According to Emergence Plaza, in 2020, by using the EDGE system to optimise its energy consumption, the Cosmos Yopougon shopping centre reduced its carbon emissions by 44%. As part of its eco-sustainability approach, Cosmos Yopougon has partnered with local clean technology and recycling companies to develop initiatives to enhance its sustainability.
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“Through these collaborations, the mall’s managers are able to accurately measure the amount of waste recycled each day and have set a target of recycling all waste to 20% by the end of this year and 25% by the end of 2022,” says Emergence Plaza, which is owned by HC Capital Properties, a London-based real estate investment company targeting West and Central Africa.
The move “highlights the benefits of green finance to companies and investors in the region: if you build green, you can access competitive finance, which is a language people understand. I think this will encourage more companies to implement environmentally responsible and sustainable projects,” says Cheick Sanankoua, the co-founder and managing partner of HC Capital Properties. Emergence Plaza’s 8-year green bond issue will have a yield of 7.5%. The transaction is also intended to support its future real estate projects. HC Capital Properties plans to issue further green bonds to finance the development of other commercial complexes in Central and West Africa.
Jean Marie Takouleu