Legal & General backs $60M green bond for Ivorian cashew waste plants
What's the deal? Legal & GeneralDealroom has a profile for this one. Try Dealroom → is the sole investor in a $60 million green bond from Singapore-based agricultural trading and processing company Valency International, financing cashew waste processing facilities in Côte d'Ivoire. The transaction, arranged by HSBC and certified by the Climate Bonds Initiative on October 15, 2026, carries a guarantee from Green Guarantee CompanyDealroom has a profile for this one. Try Dealroom → covering the full principal. It will be listed on the Vienna Stock ExchangeDealroom has a profile for this one. Try Dealroom →.
What's the endgame? Proceeds cover 40% of Valency's $150 million program to convert cashew nut shells into industrial chemicals, renewable fuels, fertilisers, and electricity. Financing for the remaining $90 million has not been disclosed.
By the numbers: The facilities will process roughly 90,000 tonnes of cashew shell residues annually, producing cashew nutshell liquid, cardanol, biochar, renewable fuel, and 5MW of generation capacity. The Climate Bonds Initiative estimates they could avoid about 880,000 tonnes of carbon dioxide equivalent over 20 years.
Why now? Côte d'Ivoire is the world's largest producer of raw cashew nuts, but only about 30% was processed locally in 2025, against a government target of 50% by 2030. Valency's project creates industrial uses for residues left over from processing.
What came before? The bond follows a €37 million loan Valency secured in September 2025, fully guaranteed by GuarantCoDealroom has a profile for this one. Try Dealroom → and structured by SymbioticsDealroom has a profile for this one. Try Dealroom →, with M&G InvestmentsDealroom has a profile for this one. Try Dealroom → providing capital. That deal supported cashew processing and storage; the new bond funds a separate part of the business.
Who's the investor? Legal & General is a British insurance, pensions, and asset management group founded in 1836. It reported £1.62 billion in core operating profit for 2025, up 6%, and managed roughly £1.2 trillion in assets at year-end. Its disclosures provide no separate figure for African investments.
What could go wrong? The guarantee reduces Legal & General's credit risk but is not additional capital for Valency. The bond's interest rate, maturity, and guarantee fees have not been disclosed.
The signal: This is the second African green bond involving Legal & General in 2026, after a $50 million solar placement in June. The deal shows large institutional investors leaning on guarantees to fund agricultural and climate projects in emerging markets.
Read more: ecofinagency.com
Image credit: Bernt Rostad
