Senegal’s SENELEC Launches $200M Hybrid Green, Sustainability Bond
TLDR
- SENELEC, Senegal’s public electricity utility, has launched a XOF 120 billion ($195 million) securitization program that combines Green Bonds and Sustainability-Linked Bonds
- The transaction involves transferring overdue and unpaid receivables, including those owed by public institutions, embassies, and large corporations, to a Special Purpose Vehicle
- The issuance, open from September 29 to November 5, 2025, carries a five-year maturity ending in 2030 and is divided into four tranches
SENELEC, Senegal’s public electricity utility, has launched a XOF 120 billion ($195 million) securitization program that combines Green Bonds and Sustainability-Linked Bonds (SLBs) — a first for Africa.
The transaction involves transferring overdue and unpaid receivables, including those owed by public institutions, embassies, and large corporations, to a Special Purpose Vehicle (SPV) — the FCTC SENELEC 2025–2030 — which will issue bonds on the West African Economic and Monetary Union (UMOA) regional market.
The issuance, open from September 29 to November 5, 2025, carries a five-year maturity ending in 2030 and is divided into four tranches: Senior, Mezzanine, and Junior C1 and C2, with yields of up to 10%.
Proceeds will fund renewable energy and energy efficiency projects (52.5%) and sustainability-linked initiatives (47.5%). The bonds will be listed on the Bourse Régionale des Valeurs Mobilières (BRVM).
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Key Takeaways
SENELEC’s hybrid Green and Sustainability-Linked Bond securitization marks a landmark innovation for Africa’s sustainable finance market. By securitizing overdue receivables and channeling proceeds into renewable energy and social-impact projects, Senegal is leveraging capital markets to advance its 40% renewable energy target by 2030. The deal underscores growing sophistication in the UMOA bond market, blending credit risk transfer with ESG-linked financing. Investors gain access to diversified tranches with varying risk-return profiles, while SENELEC strengthens liquidity and balance sheet resilience. Beyond its financial engineering, the transaction signals a regional shift toward market-based climate finance, positioning Senegal as a leader in sustainable infrastructure funding. As African utilities face rising electrification demands and fiscal constraints, the SENELEC model could become a blueprint for ESG-driven securitization across the continent’s power sector.
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