Groundbreaking Initiative Aims to Modernise National Electricity Grid, Reduce Losses, and Accelerate Cabo Verde’s Energy Transition

Dr. Olavo Correia, Vice Prime Minister and Minister of Finance of Cabo Verde; and Mr. Sohail Sultan, CEO of iibGroup

PRAIA, Cabo Verde / WASHINGTON, D.C., April 2025
In a landmark move for Cabo Verde’s sustainable development, the Intercontinental Investment Bank S.A. (iib West Africa) and the Ministry of Finance of Cabo Verde (MoF CV) have signed a Memorandum of Understanding (MoU) to facilitate the issuance of a Sovereign-Guaranteed Green Bond for Empresa de Distribuição de Eletricidade de Cabo Verde (EDEC). The signing took place on the sidelines of the Spring Meetings in Washington, D.C., reinforcing Cabo Verde’s commitment to a green and resilient energy future.

This dedicated agreement between iib and the Ministry of Finance underscores the Government’s active role in structuring a financing solution tailored to the needs of the Cabo Verdean people. The Green Bond will unlock critical investment to strengthen EDEC’s operational capacity, improve electricity production and distribution, and reduce technical and non-technical losses across the national grid.

Key Transaction Highlights

• Sovereign-Guaranteed up to EUR 50 million 7-year Green Bond
• Fully Underwritten and Subscribed by iib West Africa
• Funded by the Africa Finance Corporation (AFC)

A Bond for Cabo Verde, by Cabo Verdeans
The Sovereign-Guaranteed Green Bond is designed to directly benefit households, businesses, and communities across all nine inhabited islands of the archipelago. Proceeds will be used to promote the country’s energy transition through improvement of the energy mix, reinforcement of efficiencies, reduction of losses and boosting of generation capacity, as well as promoting social inclusion by increasing access to electricity for low-income families.

Key national priorities to be funded include:

• Expanding energy access – Bringing reliable electricity to underserved communities
• Reducing system losses – Modernising infrastructure to curb inefficiencies in the distribution network
• Enhancing energy efficiency – Supporting measures that lower electricity costs for consumers
• Strengthening EDEC – Enabling the utility to deliver more stable and sustainable power

Mr. Banji Fehintola, Executive Board Member, Head Financial Services, Africa Finance Corporation; and Mr. Sohail Sultan, CEO of iibGroup.

Publicity and Transparency at the Forefront
Recognising that public awareness is essential to the success of the initiative, iib and the Ministry of Finance have committed to a comprehensive communications campaign across Cabo Verde. Radio broadcasts, community meetings, and digital platforms will be used to explain how the Green Bond works, how funds will be deployed, and how citizens can benefit from a modernised energy sector.

H.E. Olavo Avelino Garcia Correia, Deputy Prime Minister and Minister of Finance of Cabo Verde, said, “This agreement reflects our clear national ambition to achieve universal access to electricity in Cabo Verde by 2027 while ensuring energy is accessible, affordable, and clean. For a Small Island State like ours, energy is more than just infrastructure, it is the foundation of opportunity, competitiveness, and social inclusion. The sustainability of Cabo Verde depends largely on the sustainability of our energy system. We must reduce losses, expand generation capacity, and accelerate the transition to renewable energy so that families, businesses, and communities across all islands can benefit from reliable, lower-cost electricity. Clean and affordable energy is not just an environmental goal; it is a development imperative. This green financing mechanism represents the path forward. It enables us to mobilize long-term, sustainable capital that aligns with our climate and development priorities while strengthening the financial and operational capacity of our energy sector. Through innovative partnerships like this one, we can leverage resources, attract investment, and transform ambition into concrete results. Today, we are not only signing a financing framework, but also reinforcing our commitment to a resilient, inclusive, and sustainable future for Cabo Verde. A future powered by clean energy, expanded opportunity, and the shared determination to leave no island or family behind.”

Sohail Sultan, Chairman, iibGroup, added, “This Green Bond is about engineering a structure where sovereign credibility, multilateral expertise, and private capital converge to solve a systemic problem. AFC brings unparalleled infrastructure delivery experience across Africa. Together, we are demonstrating that bankable green finance does not require concessionary rates. It requires intelligent risk allocation and long-term alignment of incentives. The real insight is this: when you design for the specific technical realities of a utility like EDEC, loss reduction, grid stability, generation efficiency, you unlock value that benefits the entire economy. That is the strategy. The bond is simply its expression.”

The parties will now proceed with finalising the bond structuring, regulatory approvals, and investor roadshows. The Green Bond issuance is expected to open for subscription later this year, with funds disbursed to EDEC thereafter.

About iibGroup Holdings W.L.L. (Bahrain)
iibGroup is a diversified international investment and banking group with operations across East Africa, the Middle East, West Africa, and the Caribbean. The Group provides commercial banking, structured investment and advisory solutions while also deploying capital into high-impact sectors such as trade, digital infrastructure, and financial inclusion. Through its regional platforms, iibGroup supports SMEs, empowers women- and youth-led enterprises, and channels capital to industries that strengthen regional integration and sustainable growth across emerging markets.

About iib West Africa (Cabo Verde)
iib West Africa is a licensed banking institution based in Cabo Verde, serving corporate and institutional clients across the African continent. The bank is committed to advancing financial inclusion, innovation, and private sector development in the region.

About the Ministry of Finance of Cabo Verde
The Ministry of Finance oversees the fiscal and economic policies of the Republic of Cabo Verde, including sovereign debt management, public investment, and international financial partnerships.