Acre Impact Capital’s Export Finance Fund Receives $40 Million Backing from EIB for Climate Investment in Africa

Acre Impact Capital’s Export Finance Fund Receives $40 Million Backing from EIB for Climate Investment in Africa

(IN BRIEF) The European Investment Bank (EIB) has committed up to $40 million to Acre Impact Capital’s Export Finance Fund I, which aims to accelerate climate infrastructure investment in Africa. The fund focuses on investing in the commercial debt tranches of export credit agencies (ECAs) transactions, with the goal of catalyzing climate infrastructure projects. It will support sectors such as renewable power, health, food and water scarcity, sustainable cities, and green transport. The partnership addresses the urgent need for climate infrastructure investment and aims to mobilize private sector capital. The fund is committed to gender smart investing and strives to promote gender equality across its portfolio. Acre Impact Capital has received support from the United States Agency for International Development (USAID) to integrate gender criteria into its investment processes.

(PRESS RELEASE) LUXEMBOURG, 17-Jul-2023 — /EuropaWire/ — The European Investment Bank (EIB) has committed up to $40 million to Acre Impact Capital’s Export Finance Fund I, an innovative private debt fund aimed at accelerating climate infrastructure investment across Africa. This pioneering fund focuses on investing in the commercial debt tranches of export credit agencies (ECAs) transactions, with the goal of catalyzing climate-infrastructure projects. The fund will specifically support sectors such as renewable power, health, food and water scarcity, sustainable cities, and green transport.

Export finance plays a crucial role in delivering long-term debt financing backed by official ECAs. It enables project sponsors to secure attractive funding and reduce the cost of debt, thus facilitating private capital mobilization. The Export Finance Fund I targets the commercial debt tranches, which have faced limited availability, especially since the COVID-19 pandemic. By providing specialized funding for this tranche, the fund aims to unlock transactions and potentially mobilize $5.6 of private sector capital for each dollar invested.

Thomas Östros, Vice President of the European Investment Bank, expressed enthusiasm for the partnership with Acre Impact Capital, stating, “The EIB is delighted to back this unique and innovative fund that aims to overcome a critical market gap and mobilize institutional capital for sustainable and impactful African infrastructure. This collaboration aligns with our commitment to accelerating climate infrastructure across Africa.”

Hussein Sefian, CEO of Acre Impact Capital, highlighted the significance of the partnership in reducing the infrastructure financing gap in Africa, estimated to be over $100 billion annually. Sefian stated, “The current credit environment presents attractive opportunities for discerning investors while addressing the urgent need for funding essential infrastructure projects.”

The Export Finance Fund I is committed to gender smart investing and strives to ensure that at least 30% of its project portfolio meets the 2X Criteria, promoting gender equality and diversity across investments. Acre Impact Capital also pledges to maintain gender balance within the fund manager and foster a culture of diversity and inclusion.

Acre Impact Capital has received technical assistance from the United States Agency for International Development (USAID)’s Scaling-Up Renewable Energy (SURE) program to integrate the 2X Criteria into its investment processes.

About EIB Global

EIB Global is the specialized arm of the European Investment Bank Group focused on increasing the impact of international partnerships and development finance. It fosters strong partnerships within Team Europe and other development finance institutions, bringing the EIB Group closer to local communities, companies, and institutions worldwide.

For more information, visit https://www.eib.org/en/global/index.htm and follow EIB Global on Twitter and LinkedIn.

About Acre Impact Capital

Acre Impact Capital invests in climate-aligned essential infrastructure through partnerships with leading commercial lenders and export credit agencies. Their Export Finance funds address the annual $100 billion infrastructure financing gap in Africa, driving economic growth and providing essential services to underserved populations. Acre Impact Capital focuses on renewable power, health, food and water scarcity, sustainable cities, and green transportation. By co-investing alongside export credit agency partners, the fund aims to achieve risk-adjusted market-rate returns while mobilizing 5.6 times the private sector capital for each dollar invested.

Supported by The Rockefeller Foundation and GuarantCo, a company of the Private Infrastructure Development Group (PIDG), Acre Impact Capital contributes to innovative finance and sustainable development.

Media contacts:

Susanna Seymour

s.seymour@eib.org
+352 4379 – 87207

Press Office

press@eib.org
+352 4379 – 21000

SOURCE: European Investment Bank