5 December 2023, London, UK –At the United Nations Climate Change Conference (COP 28) in the United Arab Emirates, a significant partnership was forged through the signing of a Non-Honoring of Sovereign Financial Obligation (NHSFO) agreement between Standard Chartered, a leading international cross-border bank, and the Islamic Corporation for the Insurance of Investment and Export Credits (ICIEC)1, a multilateral credit and political risk insurer. This pivotal agreement represents a major step in sustainable development and will support the funding of a key project for the Senegal government’s Ministry of Finance aimed at procuring and installing 50,000 off-grid solar powered streetlamps across Senegal’s rural areas, signifying substantial progress in the nation’s pursuit of renewable energy.
The agreement was officially signed by Mr. Sunil Kaushal, CEO of Standard Chartered, Africa and the Middle East, and Mr. Oussama Kaissi, CEO of ICIEC. This project, valued at EUR103 million, aims to harness solar energy to power streetlights across Senegal’s rural areas, improving the quality of life, and supporting economic activities reliant on consistent energy access. The streetlights are reliable and do not require any external power source. This means that even in villages where there is no access to electricity, these lights can still be mounted and used. The project promises enhanced safety and security through well-lit streets, extending business hours, encouraging community gatherings and fostering local economic growth. Environmentally, it underscores the importance of reducing carbon emissions and adopting eco-friendly energy practices.
Standard Chartered acted as lead Structuring and Coordinating Bank, and Mandated Lead Arranger for the financing.
Sujithav Sarangi, Executive Director, Structured Export Finance at Standard Chartered, said: “It’s part of the Bank’s strategic priorities to accelerate the transition to net zero and we were able to use our expertise in financing to structure our first Green Loan for the Senegal government to install solar-powered streetlamps across the country, helping improve the Senegalese renewable energy mix.”
Reflecting on the agreement, CEO of ICIEC Oussama Kaissi stated: “Our collaboration with Standard Chartered for the solar streetlight project in Senegal is a testament to our commitment to sustainable development in our member states. This initiative is not just about illuminating streets; it’s about empowering communities, enhancing safety, and sparking economic growth in rural areas. By harnessing the power of solar energy, we are taking a significant step towards energy independence and security in Senegal, aligning perfectly with Sustainable Development Goals 7, 11, 10, and 17.”
Sunil Kaushal, CEO of Standard Chartered Africa and Middle East, said: “Our continued partnership with ICIEC has supported strategic infrastructure projects in Senegal. The installation of solar-powered streetlamps will uplift the lives of local communities while supporting the Senegalese government’s climate goals. The Bank will continue to drive the development of the Africa and Middle East region by identifying financing opportunities for key infrastructure projects across a range of sectors.”
This transaction is another in a long line of Standard Chartered financing for the Republic of Senegal. For example, the Bank supported the construction of an Olympic football stadium in Diamniado, helped increase the Senegal’s shareholding in DP World Dakar SA, an operator of the port of Dakar’s container terminals, and supported the construction of a bridge in the new Port of Ndayane.
1 The ICIEC is a member of the Islamic Development Bank Group. See here: https://iciec.isdb.org/
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