Lloyd’s and L&G back Togo’s sustainable development with €200m loan

The Lloyd’s of London insurance market, represented by MS Amlin, Mosiac Insurance, and the Texel Group, has partnered with Legal & General in a recent transaction to bolster sustainable development in the Republic of Togo.

This collaboration facilitates Togo’s inaugural sustainable loan from international investors, a €200m through a 20-year facility extended by L&G alongside Deutsche Bank and arranged by the African Development Bank.

Driving institutional capital towards sustainable infrastructure development in the Emerging Markets and Developing Economies (EMDEs) forms a critical part in closing the funding gap faced by these countries.

The innovative financing structure, featuring a partial credit guarantee from the African Development Fund, showcases how commercial entities can drive positive impact while capitalising on the potential for strong returns through credit enhancement.

The loan benefits from a partial credit guarantee from the African Development Fund, the concessional lending arm of the African Development Bank. To meet regulatory and risk requirements, L&G worked with the consortium of insurers for principal and interest insurance protection.

This strategic partnership allowed L&G to become the Fund’s first non-bank beneficiary lender. MS Amlin and Mosaic provided the insurance protection through their Lloyd’s syndicate platforms, showcasing how Lloyd’s of London and the wider UK insurance market can mobilise institutional capital for long-term sustainable growth in EMDEs.

Jake Harper, Senior Investment Manager, Asset Management at L&G, commented: “Channelling debt financing for sustainable outcomes will generate momentum towards closing the $4 trillion annual funding gap to reach UN Sustainable Development Goals.

“We are proud to have worked with the African Development Bank, the Republic of Togo, and the Lloyd’s of London insurance market to support the sovereign’s crucial growth agenda. This innovative lending partnership between two large UK institutions is mobilising capital into developing markets, while also demonstrating that commercial institutional investors can contribute to global sustainable development with investment-grade credit risk.”

Nick Oxley, MS Amlin’s Lead Underwriter for Credit & Political Risk, said: “This landmark transaction highlights the role specialist insurers can play in unlocking institutional capital for emerging economies. By mitigating risk, we can mobilise private investment for high-impact infrastructure projects that support development goals. This shows how insurers and asset managers can work together to close the infrastructure financing gap.”

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