BGFI Bank Cameroun has become one of the latest banks to underline its green credentials by providing a standby letter of credit (L/C) to guarantee the installation of two modular solar power plants in Maroua and Guider to improve electricity supply in Cameroon's northern regions.

Scatec of the Netherlands is constructing the plants and requires guarantees from the Cameroonian electricity utility, ENEO.

Payments guaranteed

The standby L/C totalling US$11.6 million underlines the Cameroonian bank's commitment to "the structural transformation of the country's energy and mining sector," according to a BGFI statement.

The guarantees provide that Scatec will be paid regularly for the energy generated by the 14.52 megawatt Maroua and 15.78 megawatt Guider plants regardless of ENEO's financial position.

Capital expenditure financing

Earlier this year, BGFI participated in the US$40 million financing of ENEO's capital expenditure programme.

That transaction was arranged by CitiBank and Société Générale in partnership with six other local banks: BGFI, Afriland First Bank, CBC, BICEC, ECOBANK and SCB Cameroun.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.