GHANA – International corporate banking institution that operates as a subsidiary of ING Bank, ING has financed its first social impact loan in Ghana
ING’s Structured Export Finance teams in Amsterdam and Frankfurt, with support from the Sustainable Finance team, closed the US$185.37million commercial and credit export facility, which is covered by SERV (Swiss Export Risk Insurance)
The loan, which is sponsored by the Ministry of Education, will be used by the Ministry of Finance to build nine technical centers where Ghanaian youth can learn technical and vocational skills.
This includes areas such as mechanics, construction, textile, catering, IT, hairdressing and beauty, electronics, and agriculture.
These centers fall under the umbrella of Ghana’s Council for Technical and Vocational Education and Training (COTVET).
The project also aims to modernize and enhance the curriculum in these and other sectors to improve professional working knowledge, thereby contributing to Ghana’s socio-economic growth and development.
As this financing will be used to establish access to essential services – in this case, education and training – in a low-income country, the project falls under the eligible social categories of Ghana´s Sustainable Financing Framework.
The credit facility has also been aligned with the Social Loan Principles of the Loan Market Association.
“ING aims to make a positive impact on society by financing social projects that make a difference and drive progress and prosperity,” said Armand Ferreira of ING Sustainable Finance.
“We’re very proud to be supporting this project, which will have a positive and wide social impact. Its long-lasting positive effect on Ghana’s economy is motivating us to seek further transactions of this kind,” said Ron Hansen, ING Structured Export Finance.
Commenting on the loan facility, Dokyun Kim, ING Structured Export Finance said, “Having previously structured a similar educational project for Ghana’s Ministry of Finance, we were well-positioned for this financing and could use our experience to achieve a smooth and efficient process.”
The financing will have a great boost the education and technology in Ghana, especially in the wake of the Covid-19 pandemic that has disrupted the economy of the West African country.
ING acted as sole coordinator, facility agent, and SERV agent, as well as joint mandated lead arranger, and joint social loan coordinator with BNP Paribas.
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