|
Listen to this story:
|
Acre Impact Capital, a pioneering private-debt impact investment manager, announces the successful first closing of its Export Finance Fund I. With commitments nearing US$100mn and a robust target of US$300mn, the fund is set to play a transformative role in funding climate-aligned infrastructure across Africa.
Hussein Sefian, CEO of Acre Impact Capital, expressed his enthusiasm, stating, “We are incredibly proud to have received robust support from our limited partners, who recognize the potential of our innovative Export Finance Fund I to create meaningful environmental and social impacts.” Sefian further explained the fund’s strategic approach: “By leveraging export credit agencies’ support, we can deliver more competitive financing solutions, significantly reducing project costs and enhancing their economic viability.“
The fund has drawn a diverse group of investors, including notable Development Finance Institutions like the European Investment Bank and FSD Africa Investments, as well as private investors from Africa, indicating strong confidence in the fund’s risk-return profile and its strategic impact focus. This eclectic investor mix not only underscores the fund’s appealing financial structure but also its commitment to sustainable development goals.
Addressing the critical need for infrastructure financing, the fund is uniquely positioned to facilitate significant investments in sectors such as renewable energy, health, and sustainable urban development. “Our aim is to invest in 15-20 projects that will not only address the urgent infrastructural needs but also ensure substantial environmental benefits,” Sefian added.
Moreover, the fund’s commitment to gender-smart investing is evident in its strategy to ensure that at least 30% of the portfolio meets the 2X Criteria, focusing on increasing women’s representation and promoting gender equity within the projects and the fund’s operations. This is supported by Acre Impact Capital’s participation in initiatives like the USAID’s Scaling-Up Renewable Energy program which aids in integrating gender equality and social inclusion into investment processes.
Related Article: Africa Finance Corporation deepens Asia funding with Korea Development Bank US$100 million loan facility
As Acre Impact Capital continues to drive forward its ambitious agenda, the support from institutions such as The Rockefeller Foundation and the Private Infrastructure Development Group’s technical assistance through PIDG Company GuarantCo underscores the strategic and thoughtful development of the Export Finance Fund I.
The fund’s innovative approach not only sets a new standard in impact investing but also exemplifies how targeted financial interventions can effectively bridge the vast infrastructure financing gap in Africa, paving the way for a sustainable and equitable development trajectory.