African infrastructure fund secures 5m in new capital | Infrastructure news

The Emerging Africa Infrastructure Fund (EAIF) has secured a total of $385million in its latest fundraiser.

Among the investors is global insurer Allianz, which is set to become the first large commercial lender to commit long-term funding to the fund with a 12-year loan of almost $120 million.

According to the EAIF, which is part of the Private Infrastructure Development Group (PIDG),  the funds will be used over the next five years to continue the agency’s core strategy of mobilising private sector capital for investment in infrastructure projects, mainly in fragile states.

Creating attractive risk

Since its foundation, EAIF has invested around $1.3billion, which has been instrumental in attracting over $10.9 billion of private capital investment to over 70 projects in some 22 sub-Saharan countries.

Commenting on the investment Sebastian Schroff, Global Head of Private Debt, Allianz Investment Management, says the group believes in Africa’s growth potential and will invest across different asset classes across the continent.

“The partnership with EAIF and Investec Asset Management is an important contribution to this initiative and illustrates how to create attractive risk and return profiles with the necessary downside protection for our policyholders,” he explains.

Ongoing support

Other lenders include the African Development Bank (AfDB), Standard Chartered Bank and KFW.  As a returning lender to EAIF, the AfDB is providing a total of $75 million over ten years. Standard Chartered Bank is increasing and extending its existing lending to $50 million.

Underlining its continuing support, KFW – the German development bank, is contributing $50 million and €75 million, both over 12 years, and FMO, the Dutch development finance institution, is lending $50 million over 10 years.

A financial partner of choice

“EAIF has established itself as a financial partner of choice for lenders and borrowers as part of the wider set of products the PIDG, offers,” says Fund Chairman, David White.

“Now in our 16th year of operations, we have a proven track record of successful impact investment. Our success has attracted very high quality new investors and given our loyal established lenders strong reasons to continue supporting us. The completion of the latest fundraising is a clear endorsement of the PIDG’s public private partnership model in the economic development of sub-Saharan Africa.”

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