04.06.2025

Lloyd’s of London insurers support in mobilising €200m sustainable loan for the Republic of Togo

The Lloyd’s of London insurance market, represented by MS Amlin, Mosiac Insurance, and the Texel Group, has supported Legal & General (‘L&G’) in a recent transaction to drive the Republic of Togo’s sustainable development agenda. Arranged by the African Development Bank, this represents Togo’s inaugural sustainable loan from international commercial investors, enabling the country to raise up to €200m through a 20-year facility that L&G is extending alongside Deutsche Bank.

Driving institutional capital towards sustainable infrastructure development in the Emerging Markets and Developing Economies (EMDEs) forms a critical part in closing the funding gap faced by these countries. This collaboration between the insurers and L&G showcases how innovative financing structures can be used to allocate to critical infrastructure in EMDEs, allowing firms to capitalise on the potential for strong returns through credit enhancement.

The loan benefited from a partial credit guarantee from the African Development Fund (‘the Fund’), the concessional lending arm of the African Development Bank. To meet regulatory and risk requirements, L&G worked with the consortium of insurers for principal and interest insurance protection, allowing the firm to become the Fund’s first non-bank beneficiary lender. MS Amlin and Mosaic provided the insurance protection through their Lloyd’s syndicate platforms, evidencing how Lloyd’s of London and the wider UK insurance market can mobilise institutional capital for long-term sustainable growth in EMDEs.

In committing funding directly to the Government of Togo to support its Sustainable Financing Framework, L&G has shown that the UK institutional investor market can access opportunities in EMDEs with investment-grade credit risk, and target projects that can deliver strong commercial returns while mobilising capital for positive impact.

“Channelling debt financing for sustainable outcomes will generate momentum towards closing the $4 trillion annual funding gap to reach UN Sustainable Development Goals. We are proud to have worked with the African Development Bank, the Republic of Togo, and the Lloyd’s of London insurance market to support the sovereign’s crucial growth agenda. This innovative lending partnership between two large UK institutions is mobilising capital into developing markets, while also demonstrating that commercial institutional investors can contribute to global sustainable development with investment-grade credit risk,” said Jake Harper, Senior Investment Manager, Asset Management at L&G.

“The Lloyd’s market is already a significant supporter of the development finance community and is regularly providing credit protection to multilateral development banks, development finance institutions, and commercial and investment banks to support their UN SDG-aligned lending. This transaction is an example of how this experience has been used to extend support to a UK institutional investor. We look forward to structuring further insurance-backed transactions that have such a positive impact in the coming months,” said Simon Bessant, Global Head of Insurance at the Texel Group.

Nick Oxley, MS Amlin’s Lead Underwriter for Credit & Political Risk, said: “This landmark transaction highlights the role specialist insurers can play in unlocking institutional capital for emerging economies. By mitigating risk, we can mobilise private investment for high-impact infrastructure projects that support development goals. This shows how insurers and asset managers can work together to close the infrastructure financing gap.”

“We are proud to support L&G in its inaugural transaction with the African Development Fund, enabling essential lending to Togo according with UN Sustainable Development Goals,” said Natalya Tyson, Head of Public & Development Finance, Political Risk, at Mosaic, which, together with MS Amlin, provided comprehensive non-payment insurance to cover the loan. “In the midst of a geopolitical super-cycle and unprecedented volatility in the international trade and investment environment, it is especially meaningful to see British institutions coming together to champion stable, long-term, development-focused financing in Africa.”