Senegal publishes its inaugural sustainable financing framework
The State of Senegal, through its Ministry of Finance and Budget, published its sustainable financing framework on September 6, 2023.
This landmark document will enable the State of Senegal to mobilize dedicated financing on the international capital markets and from international financial institutions. The eligibility criteria can also be used as a reference by local authorities, as well as by State-owned enterprises under the control or supervision of a Ministry.
Senegal is the first country to articulate both the means and results logics by combining use of proceeds and/or sustainability-linked funding. The aim is to combine or alternate the earmarking of proceeds and the linkage to official sustainability performance targets. Among the ten (10) categories of expenditure eligible for the use-of-proceeds approach, seven (7) are related to social considerations and three (3) to environmental ones. Access to basic infrastructure and services, including education, stands out as a key priority.
Senegal demonstrates its innovative approach to fund raising, as well as its commitment to the Sustainable Development Goals (SDGs). This approach paves the way for new partnerships between public issuers and private investors in achieving these universal objectives.
The sustainable financing framework has been independently reviewed by Moody’s ESG Solutions and assessed as compliant with ICMA’s Green Bond Principles and Social Bond Principles for the earmarked portion and with the Sustainability-Linked Bonds Principles for the sustainability-linked portion. Senegal’s framework was awarded the highest achievable rating in terms of alignment with these Principles (« advanced »).
A progress report on the selected indicators for sustainability-linked financing will be published annually until the last observation date and will be reviewed by Senegal’s Court of Auditors. A report on observance of sustainability performance targets will be published on the dates specified at the time of issue.
The Ministry of Finance and Budget worked with Natixis CIB Green & Sustainable Hub to structure the sustainable financing framework.
The World Bank and the United Nations Development Programme (UNDP) are involved in sustainable financing programs through:
• technical assistance for the formalization of sustainable performance indicators and the modeling of their targets and trajectories;
• support in the development of impact reports.
Dakar, September 6, 2023
The Ministry of Finance and Budget