The Board of Directors of the African Development Bank has approved a non-sovereign partial credit guarantee of up to €120 million to enable Mota-Engil Africa, a leading construction and infrastructure company in Africa, to raise a minimum of €170 million sustainability-linked loan (SLL) from commercial lenders.
This transaction marks the first direct Bank support to an Engineering, procurement and construction (EPC) company, recognizing the sector's vital contribution to inclusive economic growth, job creation, and climate-resilient infrastructure.
The Bank's partial credit guarantee will enable the company to mobilize long-term commercial financing and extend the average maturity of its debt profile, thereby strengthening its financial profile and enhancing its ability to implement sustainable infrastructure projects across Africa. The transaction reflects the Bank's commitment to diversifying its private sector engagement and supporting the delivery of large-scale, sustainable infrastructure in alignment with its Ten-Year Strategy 2024-2033.
Solomon Quaynor, Vice President for Private Sector, Infrastructure and Industrialization at the African Development Bank Group, said: "This landmark guarantee transaction demonstrates the African Development Bank's commitment to using guarantees to crowding-in global and regional private capital for green and inclusive growth. The guarantee will enable Mota-Engil Africa to strengthen its balance sheet and pursue projects aligned with its sustainability goals and Africa's development priorities."
The African Development Bank recognizes the importance of strengthening regional players like Mota-Engil Africa, who bring almost 80 years of continuous operation on the continent, a €10 billion contract backlog, and a presence in 14 African countries. The company employs over 24,500 people in Africa, over 95% of whom are local. It also provides turnkey infrastructure, industrial engineering, environmental services, and transport concessions, and has a strong track record in project delivery and risk management.
The company's robust pipeline includes projects in the transport, mining, water, and urban infrastructure sectors, including the landmark Lobito Corridor concession spanning Angola and the Democratic Republic of Congo. The Bank's intervention aims to reinforce Mota-Engil Africa's role as a resilient and sustainable infrastructure partner for Africa's future.
The loan proceeds will finance a portfolio of eligible impactful infrastructure projects aligned with the company's Sustainability-Linked Financing Framework. These include transport infrastructure, environmental services, water and sanitation systems, and energy-efficient civil works in over a dozen African countries. Mota-Engil Africa's sustainability strategy is underpinned by measurable Key Performance Indicators including targets to improve health and safety performance, increase women's representation in management, and enhance local employment creation and skills development.
Manuel Mota, Chairman of Mota-Engil Africa, said: "We are proud to be the first EPC partner to benefit from this innovative instrument. The Bank's guarantee will support our efforts to deliver impactful infrastructure projects while improving the maturity profile of our debt and accelerating progress on our ESG commitments."
This operation is aligned with the Bank's High 5 priorities, in particular "Industrialize Africa" and "Improve the quality of life for the people of Africa" and contributes to the Ten-Year Strategy's dual objectives of accelerating inclusive green growth and fostering prosperous and resilient economies.
To learn more about Mota Engil's operations in Africa click here.
