The European Investment Bank (EIB) has announced a pledge of up to $40 million in support of Acre Impact Capital’s Export Finance Facility. This is learned from a note released by the EIB itself, in which it is specified that this support is aimed at catalyzing investments in infrastructure for the climate in Africa. The new fund will invest in shorter-maturity tranches of commercial debt, a prerequisite for support from Export Credit Agencies (ECAs), which typically cover the remaining 85% of the project’s value.
Export Financing offers long-term financing secured by official ECAs. It allows project promoters to significantly reduce the cost of debt, obtaining highly advantageous financing and long-term financing of up to 22 years. ECAs can thus significantly improve the sustainability of the project for the developer and involve private capital.
The new fund fills a gap in the market, unlocking transactions and potentially mobilizing nearly $6 of private sector capital for every $1 invested. “The current credit environment creates attractive opportunities for savvy investors while addressing the urgent need for financing for critical infrastructure projects,” said Hussein Sefian, CEO of Acre Impact Capital. [Da Redazione InfoAfrica]
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