EAIF raises $385m to drive five-year business plan

11 April 2018

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 infrastructureprojects, 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.

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.

“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 on Tuesday.

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

EAIF head at IAM Nazmeera Moola said: “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.”

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 infrastructureprojects in sub-Saharan Africa, Moola said.

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