Innovest serves as sustainability advisor for Senelec 120 Billion FCFA Sustainable Bond Issuance

October 14, 2025

We are proud to have partnered with Senelec and BOAD TITRISATION, the securitisation arm of the West African Development Bank, as the sustainability advisor for the Senelec 120 billion West African Francs (FCFA) bond. This landmark transaction is the first sustainable bond issuance by an African utility and marks an important milestone for expanding sustainable energy access in Senegal and setting a precedent across the continent.

Société Nationale d’Électricité du Sénégal (Senelec) is Senegal’s national electricity utility, responsible for generation, transmission, and distribution across the country. Established as a state-owned entity, it plays a critical role in delivering reliable, affordable and sustainable power to the Senegalese population. Senegal faces the dual challenge of expanding electricity access while decarbonising its energy system. Senelec is central to this effort, aligning its strategy with Senegal’s development agenda of universal electricity access by 2030 and the country’s commitments under the Paris Agreement.

Over the past decades, Senelec has grown from a small urban supplier into a nationwide provider serving more than 2.4 million clients and producing 6,654 GWh in 2023, while steadily expanding its generation capacity. Today, its mission is clear: modernise the grid, accelerate renewable energy adoption, and expand electricity access to all communities in Senegal.

The 120 billion FCFA bond (USD 215 million) will be securitised by a pool of utility contracts from Senelec’s government and corporate clients and is being offered to investors in two classes: an 83 billion FCFA local currency senior tranche focused on international investors and a 25 billion FCFA mezzanine tranche focused on  West African investors.  A junior tranche of 12 billion FCFA is reserved for Senelec.  Both the UK Government-backed Guarantco and BOAD are offering investors in the senior tranche an FX guarantee, subject to terms and conditions.

For this issuance, Innovest designed a customised Sustainable Finance Framework to fully account for Senelec’s unique position as an emerging market utility provider. The Framework incorporates two components, both aligned with ICMA’s principles: (i) a Green Bond (use of proceeds) Component, to fund nine renewable energy projects, and (ii) a Sustainability-Linked Bond (SLB) Component, which ties financing to three specific KPIs and measurable, periodic Sustainability Performance Targets (SPTs) for each KPI. This structure represents an innovative approach that both channels capital to green infrastructure and embeds accountability for long-term impact.

As of Q1 2025, renewables already account for 27.8% of Senelec’s energy mix, with a clear target to reach 40% by 2030. The Sustainable Finance Framework reflects these priorities: the Green Bond Component supports new renewable capacity, while the SLB links financing to KPIs and SPTs on renewable energy growth, decarbonisation, and increased electrification.

The issuance has secured a Second Party Opinion from Moody’s Ratings who have awarded the transaction with a SQS-2 ‘good’ rating. 

Our role does not end with the issuance. Over the next five years, Innovest will independently monitor and report on the bond’s KPIs and SPTs, ensuring transparent communication of progress to all stakeholders. These reports will be subject to third-party verification in alignment with ICMA requirements. This issuance demonstrates how sustainable finance can balance social development with environmental responsibility, and Innovest is proud to be the impact partner making that vision a reality.

The marketing on the issuance runs until November 5 2025.  Of the 83 billion FCFA senior tranche, only 39 billion FCFA remains unsubscribed and for the 25 billion FCFA mezzanine, only 18 billion remains, based on investor commitments to date.