Ashurst advises anchor investors in PEPT II, a one-of-a-kind social asset-backed security in West Africa
Ashurst advised EAAIF (Emerging Africa & Asia Infrastructure Fund), the African Development Bank (AfDB) and Norfund as anchor investors in the second social securitisation of the Electricity for All Programme Fund (PEPT), the “FCTC Électricité Pour Tous 2025-2040,” with a total issuance size of XOF 60 billion, aimed at financing the access to electricity for low-income households. This new issuance attracted both regional and international investors, underscoring the appeal of the PEPT framework for impact-oriented capital.
The structure benefits from an IFC guarantee of XOF 15.8 billion (26% of the issuance), materially enhancing the risk profile. The notes are GSS (Green, Social, Sustainable)-aligned, as confirmed by Moody’s, and are rated by GCR Rating West Africa as follows: “AA” (Tranche A, 7 years), “AA-” (Tranche B, 10 years) and “A+” (Tranche C, 15 years).
Following a first issuance of the same size in 2023, this transaction brings total resources raised by the PEPT Fund through securitisation to XOF 120 billion. It is expected to finance approximately 800,000 new connections over 2024-2027. It also marks the first subscription by the AfDB and Norfund to a local-currency social bond within WAEMU.
The bonds will be listed on the Bourse Régionale des Valeurs Mobilières (BRVM), the regional stock exchange for West Africa.
Ouns Lemseffer, Managing Partner at Ashurst Casablanca, said: “This transaction demonstrates the capacity and pivotal role of regional capital markets to finance, through an innovative structure and in local currency, essential infrastructure with high social impact. We are delighted to have advised EAAIF, AfDB and Norfund on this landmark private capital mobilisation to support the government-led program PEPT targetting universal access to electricity in Côte d’Ivoire by 2030.”
Folatomi Fayemi, Investment Specialist, Ninety One, the fund manager of EAAIF, said: “This second securitisation underscores the strength and scalability of the PEPT model in mobilising long-term, impact-focused capital for essential services. By deepening investor participation in local-currency social bonds, the transaction not only expands access to affordable electricity for rural households but also strengthens regional capital markets. As EAAIF’s second commitment to the programme, we are proud to support a structure that is setting a new benchmark for sustainable infrastructure financing in the region.”
Lamine Robert Koné, Senior Investment Officer, African Development Bank, said: "The African Development Bank is proud to support Côte d'Ivoire's PEPT program through this landmark transaction. By subscribing to our first local currency social bond in WAEMU, we are demonstrating how innovative capital markets solutions can finance mass electrification and improve lives for millions of households. This transaction exemplifies the collaborative approach needed under Mission 300 to achieve universal electricity access by 2030. We thank Ouns Lemseffer and the Ashurst team for their expert guidance throughout this complex structuring."
Fabrice Mpollo, Senior Investment Manager, Norfund, said: "We are particularly honoured to support the PEPT fund on this new securitization (FCTC EPT 2025-2040) and partner with EAAIF and the African Development Bank. This is a “First” of the kind for Norfund in the WAEMU region which involves long term local currency mobilization dedicated to accelerating mass electrification. We are grateful for the support and guidance of Ouns Lemseffer our legal counsel and Ashurst throughout a process which had significant layers of complexity. Norfund remains steadfast on its objectives to support access to electricity for the populations still unserved in west Africa and more broadly in sub-Saharan."
The Ashurst team was led by Ouns Lemseffer (Managing Partner, Casablanca) supported by Agathe Burtz (associate, Paris). Tom Longmuir (Partner, Paris) advised on the IFC guarantee.
