Ébène, Mauritius – The Trade and Development Bank Group (TDB Group) is pleased to announce the successful conversion of its bilateral facility with Sumitomo Mitsui Banking Corporation (SMBC) into a Sustainability Linked Loan (SLL), the first of its kind to be received for TDB. The bilateral facility has been structured as an SLL effective 4 February 2026, marking another milestone in TDB’s ongoing commitment to driving sustainable development across its regional Member States.

This facility follows TDB’s increased deployment of sustainability-linked capital, including through specific SLL facilities which have delivered significant results in terms of GHG emissions, deforestation and reforestation, extension services to famers, and gender empowerment. 

Driving Measurable Development Outcomes

A Sustainability-Linked Loan (SLL) is a type of loan that incentivizes borrowers to meet predetermined key performance indicators (KPIs), with loan pricing adjusted to reflect achievement of targets.

As such, through this SLL, TDB commits to ambitious annual targets that track progress towards stimulating employment growth and supporting livelihoods across its portfolio as well as scaling renewable energy production.

This structure strengthens accountability, enhances transparency, and reinforces TDB’s leadership role in sustainable finance in the region.

These KPIs are aligned with TDB’s strategic priorities of expanding employment opportunities and increasing access to clean energy, two critical levers for long‑term socio‑economic resilience and sustainable growth across Africa. The facility also aligns with the ambitions of Mission 300 - an initiative led by the World Bank Group and the African Development Bank to connect 300 million Africans to electricity by 2030 - which TDB Group has actively been supporting and contributing to.

A Strengthened Partnership for Development Impact

TDB Group and SMBC have a long-standing relationship spanning different types of impactful engagements. SMBC has served mandated lead arranger and lender on a number of TDB global syndicated facilities and Eurobond issuances. Likewise, it has provided short-term trade finance lines of credit to TDB towards the financing of strategic commodities imports as well as significant ECA facilities geared at bolstering access to electricity in Member States, and in general, at promoting economic growth, job creation, and sustainable development.

Admassu Tadesse, TDB Group President and Managing Director, commented: “We are delighted to deepen our partnership with SMBC through this milestone sustainability‑linked loan. By tying financial terms to measurable development outcomes, this facility reinforces TDB Group’s commitment to delivering tangible impact, particularly in job creation and clean energy access, which are critical priorities for our region.”

Hiromitsu Yoshizawa, SMBC’s Deputy Head of EMEA Division added: “SMBC is proud to be partnering with TDB on its first sustainability linked loan, supporting its vital role in advancing inclusive and low carbon development across Africa. This transaction aligns closely with SMBC’s commitment to social value creation and sustainability, and we look forward to continuing our collaboration with TDB to deliver measurable impact across the region.”

Supporting Africa’s Transition and Resilience

The conversion of this facility represents a significant step in TDB’s broader sustainability agenda, which reflects the Bank’s dedication to supporting a just, inclusive, and climate-resilient transition. With rising demand for jobs, energy, and infrastructure across Africa, innovative financing mechanisms like this SLL are essential to unlocking long‑term, transformative impact.

About TDB Group

Established in 1985, the Trade and Development Bank Group (TDB Group) is an African regional multilateral development bank, with a mandate to finance and foster trade, regional economic integration, and sustainable development in Africa. TDB Group counts several subsidiaries and strategic business units including Trade and Development Banking, TDB Asset Management (TAM), the Trade and Development Fund (TDF), TDB Captive Insurance Company (TCI), the ESATAL trade asset management company and TDB Academy.

www.tdbgroup.org

About SMBC
SMBC is a leading global financial institution headquartered in Tokyo, Japan. With a presence in over 40 countries, SMBC provides a comprehensive suite of financial services, including corporate banking, investment banking, and asset management. 

https://www.smbcgroup.com/emea