Baker McKenzie has advised Deutsche Bank on a sustainability-linked financing for Mota-Engil West Africa, involving a €170 million ($199 million) sustainability-linked loan backed by a €120 million non-sovereign Partial Credit Guarantee issued by the African Development Bank Group (AfDB).
The AfDB guarantee was signed at the bank’s headquarters in Abidjan and provides credit enhancement to support the refinancing of Mota-Engil West Africa’s existing debt, including an extension of maturities. The financing links loan terms to sustainability performance targets, reflecting the growing use of ESG-linked structures in infrastructure finance.
Proceeds from the sustainability-linked loan are intended to support a pipeline of infrastructure projects across more than a dozen African countries, spanning transport infrastructure, environmental services, water and sanitation systems, and energy-efficient civil works.
The Baker McKenzie advisory team was led by banking partner Luka Lightfoot, supported by senior associate James Clarke and trainee Katy Gargiulo. Partner Sarah Smith and senior associate Shaneil Shah advised on the compliance of the AfDB’s partial credit guarantee with EU Capital Requirements Regulation (CRR) “eligible guarantee” rules.
Commenting on the transaction, Luka Lightfoot said: “We are extremely proud of the role Baker McKenzie played in supporting Deutsche Bank on this financing. Our team worked collaboratively to deliver a multi-jurisdictional structure that integrates sustainability targets and leverages the AfDB’s partial credit guarantee.”
