https://www.engineeringnews.co.za

EAIF raises $385m in new debt financing to drive five-year business plan

10th April 2018

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

Font size: - +

The Emerging Africa Infrastructure Fund (EAIF), managed by Investec Asset Management (IAM), has completed its latest fundraising round, raising $385-million in new long-term debt capital to invest in Africa.

The funds will be used over the next five years to continue EAIF’s core strategy of mobilising private sector capital for investment in infrastructure projects, mainly in fragile States.

The lending group for the fundraising are existing lenders KfW, the German development bank; FMO, the Dutch development finance institution; and Standard Chartered Bank; as well as large commercial institutional investor Allianz. The African Development Bank (AfDB) returns as a lender.

EAIF is part of the Private Infrastructure Development Group (PIDG), which blends public and private finance to reduce investment risk, promote economic development and combat poverty.

Allianz’s investment in EAIF marks the start of PIDG’s drive to attract greater levels of funding from institutional and commercial sources.

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

As a leading proponent of innovative impact investment, Allianz, one of the world's leading insurers and asset managers, is financing €75-million and $25-million, both over 12 years, as EAIF’s first commercial institutional investor.

The EAIF debt financing was run by Allianz Global Investors (AllianzGI) on behalf of Allianz Group.

“We believe 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,” Allianz Investment Management private debt global head Sebastian Schroff said in a statement on Tuesday.

The sentiment was supported by AllianzGI infrastructure debt director Nadia Nikolova, who said that the company [AllianzGI] was “delighted to put its infrastructure debt expertise to work to help facilitate Allianz’s investment strategy in Africa.

“Over the last five years, our global infrastructure debt platform has invested over €10-billion into infrastructure projects across the globe. As Africa unlocks its economic potential, the continent will become increasingly important for institutional investors,” Nikolova added.

As a returning lender to EAIF, the AfDB is providing $75-million over ten years.

Standard Chartered Bank is increasing and extending its existing lending to $50-million and KfW is contributing between $50-million and €75-million, both over 12 years.

FMO is lending $50-million over ten years.

"We are pleased to expand our commitment to the EAIF. This partnership and the investments in renewable-energy and cleaner technologies strengthen economic development across large parts of the African continent and improve the quality of life of those living there,” said KfW Development Bank Africa head Helmut Gauges.

Since winning EAIF’s fund management mandate in 2016, IAM has delivered all of the key performance indicators set for the fund.

Subsequently, EAIF head at IAM Nazmeera Moola stated that bringing the vision and support of a lender of Allianz’s calibre on board represents a milestone in terms of mobilising private capital into infrastructure projects across the continent.

“This debt raising exemplifies the gains to be made from PIDG’s blended finance approach. IAM has a successful track record of co-investing private and public funds side by side in both private credit and private equity funds in Africa.”

She further added that EAIF ended 2017 with ten new transactions signed, representing about $200-million in loan commitments and bringing EAIF’s committed loan portfolio to $750-million.

The fund is rapidly approaching having 45 active projects in its portfolio, making it one of the leading suppliers of debt finance to private sector infrastructure projects in sub-Saharan Africa, Moola said.

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

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.263 0.322s - 157pq - 2rq
Subscribe Now