Watson Farley & Williams (“WFW”) advised a syndicate of European and international banks on an €100m pre-export financing granted to the Benin-based Société pour le Développement du Coton (“SODECO”).
SODECO will use the proceeds for the prepayment made to the Interprofessional Cotton Association to confirm its export quotas as well as the purchase, processing, storage and transit of cotton lint to international traders for its 2025-26 cotton season. SODECO may benefit from a one-year extension option allowing it to apply the same financing to the 2026-27 cotton season on the same terms and conditions, with the opportunity for new lenders to enter the structure.
This strategic funding was arranged by a syndicate of international banks, reflecting strong investor confidence in Benin’s cotton industry and SODECO’s major role in its continued growth.
SODECO is a subsidiary of the SFP Group (Société de Financement et de Participation) founded in 2008. With 19 factories across Benin, SODECO exports cotton fibre to the world’s largest traders and actively contributes to the development of the local textile industry.
The WFW Paris Finance team that advised the banks was led by Partner Laurence Martinez-Bellet, supported by Associates Caitlin Jenkins and Olivier Charron.
Laurence commented: “Benin reaffirms its standing as Africa’s top cotton producer since 2018. SODECO securing this €100m structured pre-export financing arranged by a syndicate of international banks is another milestone and we are delighted to have supported the lenders in negotiating and documenting this transaction.”
HK Avocats & Associés acted as the lenders’ Beninese counsel. Hughes Hubbard Reed advised SODECO.