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ING finances its first social impact loan in Ghana

12 May, 2022 |
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To be used for education and vocational training centres to boost socioeconomic growth

While sustainable finance is usually associated with climate goals, ING also finances projects that benefit people. One recent example is a social impact loan to Ghana’s Ministry of Finance to set up vocational training centres in various locations across this West African country.

ING’s Structured Export Finance teams in Amsterdam and Frankfurt, with support from the Sustainable Finance team, closed the €176.5 million 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 in areas such as mechanics, construction, textile, catering, IT, hairdressing and beauty, electronics, and agriculture.

These centres fall under the umbrella of Ghana’s Council for Technical and Vocational Education and Training (COTVET).

The project also aims to modernise and enhance the curriculum in these and other sectors to improve professional working knowledge, thereby contributing towards Ghana’s socioeconomic 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,” says Armand Ferreira of ING Sustainable Finance.

“We’re very proud to be supporting this project, which will have a positive and wide social impact. It’s long-lasting positive effect on Ghana’s economy is motivating us to seek further transactions of this kind,” says Ron Hansen, ING Structured Export Finance.

“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,” says Dokyun Kim, ING Structured Export Finance .

ING acted as sole coordinator, facility agent and the SERV agent, as well as joint mandated lead arranger, and joint social loan coordinator with BNP Paribas.