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Tag: Ninety One

  • EAAIF anchors Axian Telecom’s USD 600 million bond

    EAAIF anchors Axian Telecom’s USD 600 million bond

    …Powering Africa’s digital economy 

    The Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private Infrastructure Development Group (PIDG) company managed by Ninety One, today announced its anchor investment in Axian Telecom’s USD 600 million 5-year bond issuance. EAAIF invested USD 40 million as part of a USD 160 million anchor investment alongside the International Finance Corporation (IFC), British International Investment (BII), DEG, and Proparco. The transaction’s orderbook saw a final 2x oversubscription, attracting over USD 1.3 billion in demand, underscoring strong investor confidence in Axian Telecom’s growth trajectory and Africa’s vibrant digital sector.

    EAAIF’s investment will support, among other key initiatives, Axian Telecom’s capital expenditure across its subsidiaries – driving economic growth and providing improved digital infrastructure to millions of people. Operating across Madagascar, Senegal, Tanzania, Togo, Uganda, Democratic Republic of Congo, and Comoros, Axian serves over 40 million mobile customers with digital infrastructure, including mobile broadband networks, fibre optic cables, towers, subsea cables, and data centres. Its impressive revenue growth – approximately 2.5-fold between 2020-2023 – ranks it among the Financial Times’ fastest-growing companies in Africa, reinforcing EAAIF’s commitment to identify and back fast-growth, ambitious businesses that are vital to digital economies.

    Recognising that connectivity is key to the future of work, EAAIF has long been a leading force in developing Africa’s digital infrastructure – from telecom towers to green data centers. The transaction deepens EAAIF’s partnership with Axian Telecom, having previously acted as co-anchor for its maiden USD 420 million bond issuance, which supported the company’s expansion in frontier economies across the region, including Tanzania, Madagascar, and Togo. EAAIF has consistently led the development of bond issuances to support cutting-edge infrastructure in Africa, anchoring key transactions for digital champions with strong regional footprints. The Fund has also invested in pan-African data centre developers to help meet the continent’s surging demand for climate-aligned technology innovation. 

    Africa’s young, tech-savvy, and rapidly growing population is driving demand for mobile and digital services. While fixed broadband remains limited due to high costs and infrastructure gaps, the continent has a unique opportunity to leapfrog outdated systems and build a digitally empowered future. Through partners like Axian Telecom, EAAIF is helping scale telecom infrastructure across emerging markets, laying foundations for connectivity that spans nations, strengthens communities, and supports the ambitions of people across Africa in an increasingly connected world.

    This bond issuance also helps to strengthen Africa’s nascent debt capital markets. For telcos, issuing bonds provides access to substantial, long-term capital, often at a lower cost than traditional loans, enabling large-scale network expansions and technology upgrades. It also attracts international investors, deepening market liquidity and confidence. EAAIF’s ongoing support for corporate bond issuances – including over USD 320 million allocated to telecom bonds, contributing to more than USD 6.2 billion raised in total – highlights its role in strengthening Africa’s digital economy and expanding funding options for high-growth businesses.

    Hassan Jaber, CEO of Axian Telecom, said: “We are honoured by the trust placed in us by EAAIF and our fellow anchor investors. Their support for this bond issuance is a strong vote of confidence in our long-term vision and the impact of our work. This financing enables us to scale innovative digital infrastructure across our markets and to bring transformative connectivity to millions, fostering inclusive growth and strengthening AXIAN Telecom’s role in advancing Africa’s digital future.”

    Tidiane Doucoure, Director, Emerging Market Alternative Credit, Ninety One, the Fund Manager of EAAIF, said: “The development of African capital markets is and will remain a priority for PIDG and Ninety One. Expanding access to digital services unlocks new economic opportunities, and greater financial inclusion, which are crucial drivers for intra-African trade and entrepreneurial growth. This oversubscribed transaction underscores the immense potential of African businesses and the growing confidence of global investors in the region’s digital future and champions like Axian Telecom.” 

  • EAAIF completes $325 million debt raise to accelerate its investments in emerging market infrastructure

    EAAIF completes $325 million debt raise to accelerate its investments in emerging market infrastructure

    …Since 2018, EAAIF has raised more than $1 billion in commitments across three debt raises

    The Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private Infrastructure Development Group (PIDG) company managed by Ninety One, has successfully raised $325 million in new debt facilities, bringing recent commitments to $620 million and exceeding the Fund’s $500 million target ahead of schedule. The debt raise cements EAAIF’s position as the go-to partner for investors to access scalable and untapped opportunities in the emerging market infrastructure debt asset class, through an A2-rated (Moody’s) lending platform. 

    Allianz Global Investors (AGI) led the financing on behalf of Allianz Group, one of the world’s leading insurers and asset managers, committing €100 million to EAAIF. One of South Africa’s largest financial services organisations, ABSA, provided $75 million. Standard Bank, Africa’s largest lender by assets, contributed an additional $50 million to facilities already provided. Japanese multinational bank, Sumitomo Mitsui Banking Corporation (SMBC) extended a $50 million credit facility, while Swedfund, Sweden’s development finance institution, allocated €40 million. The new debt package builds on EAAIF’s $294 million capital raise secured in 2024. 

    This demonstrates the Fund’s ability to mobilise a global community of public and private investors united by a shared purpose of channeling capital, innovation, and expertise to expand infrastructure debt markets in Africa and Asia. The new debt finance package will support EAAIF’s ambition to generate sustainable development impact and deliver positive returns. The financing will enable $1 billion of investment by the Fund in next-generation infrastructure across Africa and Asia by 2028. EAAIF’s investment strategy targets assets that advance digital economies, scale transition infrastructure, and reshape power markets. 

    The successful debt raise comes at a critical time. The Asia-Pacific region alone faces a shortfall of at least $800 billion in climate financing, while just c.23% of Africa’s climate finance needs are currently met. Action on climate is at the heart of PIDG’s strategy, which aims to improve economic resilience and climate opportunities for 100 million people by 2030. As one of Africa’s longest-serving infrastructure debt providers, EAAIF draws on the Group’s whole life-cycle approach – spanning project development, financing, and long-term sustainability – to transform economies and improve lives, while delivering meaningful action on climate adaptation, resilience, and mitigation.

    Since its inception in 2001, EAAIF has committed over $3 billion to more than 125 infrastructure projects across 25+ countries and 10 sectors in Africa and Asia. In 2024, Moody’s reaffirmed the Fund’s foreign currency long-term issuer rating of A2 with a stable outlook and minimal default rate, reinforcing its position as a leading instrument for investors seeking investment protection, returns, and exposure to Africa and Asia’s growing infrastructure asset class.

    Martijn Proos, Co-head of EM alternative Credit at Ninety One and Managing Director for EAAIF, said: “These successful subsequent debt raises highlight global investors’ confidence in EAAIF’s ability to create attractive investment solutions that seize untapped opportunities in fast-growth markets. By strengthening our capital base and diversifying our funding sources, we are favourably positioned to drive business growth and economic transformation through private infrastructure debt investment in pioneering infrastructure. We thank Allianz, ABSA, Standard Bank, SMBC, and SwedFund for their continued support.”

    Philippe Valahu, CEO of PIDG, said: “As a PIDG company, EAAIF is driven by a vision of delivering essential infrastructure that unlocks economic opportunities in the markets where we invest. This milestone is a significant step forward for PIDG, which aims to deliver $9 billion in new commitments for infrastructure and mobilise $25 billion in additional finance by 2030. We look forward to continuing this journey alongside our partners as we develop innovative mobilisation strategies across the project lifecycle to deliver progress in the regions where we operate.”

    Maria Håkansson, CEO of Swedfund, Sweden’s development finance institution, said: “The EAAIF has a critical role to play in financing high-impact infrastructure projects across Africa, while challenging risk perceptions around African infrastructure investment and mobilising private capital. This is essential to closing the financing gap and building capital markets to achieve better environmental and social impact.”

    Neha Bantha, Executive Vice President for Leveraged Finance at Standard Bank Corporate & Investment Banking said: “We are proud to be part of this consortium which will enable funding for strategic infrastructure projects that underline our broader purpose, to drive Africa’s growth. This transaction forms a cog in our broader wheel of innovative financing and objective to deliver structured capital solutions that help our partners and clients deliver for the continent and we look forward to future partnership opportunities that leverage Africa’s immense potential”.    

    Nisrin Abouelezz, Managing Director and Head of Africa Group of SMBC said: “SMBC is pleased to partner with EAAIF in this year’s debt raise which aligns well with SMBC’s own strategy for sustainability and social value creation. SMBC continues to support our clients as they further global energy transition, while supporting social infrastructure and value creation on the African and Asian continent”.  

    Shyam Ganda, Director – Global Finance, ABSA, said: “As a Pan-African bank, Absa is proud to partner with EAAIF in supporting projects which will accelerate infrastructure development for lasting impact –  bridging Africa and Asia’s long-term financing gap, whilst supporting economic growth and renewable energy expansion”.  

  • EAAIF Co-Anchors $1.2B IHS Bond with IFC, Proparco to Boost Africa’s Digital Connectivity

    EAAIF Co-Anchors $1.2B IHS Bond with IFC, Proparco to Boost Africa’s Digital Connectivity

    The Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private Infrastructure Development Group (PIDG) company,  managed by Ninety One, acted as a co-anchor investor alongside IFC and Proparco in IHS Holding Limited (NYSE:IHS) (“IHS Towers”)’ $1.2 billion issuance to support digital connectivity in Africa. The bond was oversubscribed in excess of $2.3 billion, and upsized to $1.2bn, enabling increased participation from private investors. 

    The proceeds of the bond will refinance existing debt of the emerging market focused communications infrastructure company and support organic growth in its African subsidiaries including Cameroon, Côte d’Ivoire, Nigeria, Rwanda, South Africa and Zambia. 

    Private debt is increasingly being mobilized to address Africa’s infrastructure financing gap, with corporate bonds gaining traction as innovative solutions to attract local and global investors. EAAIF anchored IHS Towers’ maiden bond in 2016, reinforcing the Fund’s position as a leading pioneer of corporate debt for telecommunications companies in Africa. Since 2016, EAAIF has allocated over $283 million to bond issuances by dynamic African telecom and digital infrastructure providers, contributing to more than $5.6 billion raised in total. 

    EAAIF’s commitment to deepening Africa’s capital markets helps overcome funding challenges in emerging markets and reinforces the PIDG strategy to deploy innovative infrastructure that accelerates Africa’s economic transformation.  

    EAAIF has participated in the following issuances since 2016: 

    • $1.2 billion IHS Towers (EAAIF final allocation $30 million) 2024
    • $300 million Africell issuance (EAAIF final allocation $28 million) 2024
    • $120 million Sonatel asset-backed security (EAAIF final allocation $38 million) 2024 
    • $850 million Helios Towers issuance (EAAIF final allocation $25 million) 2024
    • $400 million Axian issuance (EAAIF final allocation $20 million) 2022
    • $620 million Liquid Telecoms issuance (EAAIF final allocation $15 million) 2021
    • $180 million Sonatel corporate bond (EAAIF final allocation $27 million) 2020
    • $750 million Helios Towers issuance (EAAIF final allocation $30 million) 2020 
    • $600 million Helios Towers issuance (EAAIF final allocation $30 million) 2017
    • $600 million IHS Towers (EAAIF final allocation $40 million) 2016

    Folatomi Fayemi, Investment Specialist, Ninety One, EAAIF’s fund manager, said: “We are delighted to continue to support IHS Towers as it expands operations across the continent, extending access to transformative digital services that will shape Africa’s fourth industrial revolution. Over the past 8 years, EAAIF has led the development of corporate debt to support this critical sector. We will continue to serve as a pioneer in the space, overcoming funding challenges to provide innovative solutions that engineer growth in ambitious companies.” 

  • EAAIF acts as sole impact investor, anchors Africell’s debut issuance of USD300 million international public bond

    EAAIF acts as sole impact investor, anchors Africell’s debut issuance of USD300 million international public bond

    • The financing will support the roll-out of digital infrastructure across four countries, enhancing connectivity for Africell’s current 14 million customers and boosting future growth. 
    • The investment demonstrates EAAIF’s pledge to accelerate the development of capital markets across Africa and South and Southeast Asia

     The Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private Infrastructure Development Group (PIDG) company, managed by Ninety One, has invested USD28 million and acted as the sole impact investor in an oversubscribed USD300 million capital market maiden bond issue. Book orders over USD550 million meant that EAAIF could reduce its anchor commitment from USD40 million to USD28 million, allowing the participation of more private capital from a variety of international investors. 

    The proceeds of the issuance will support capital expenditure growth across Africell’s subsidiaries in Angola, the Democratic Republic of Congo (DRC), The Gambia, and Sierra Leone. This will strengthen the supply of mobile and data connectivity for approximately 14 million current subscribers, with conditions ripe for future expansion across these countries. 

    Magase Mogale, Africell’s Executive Vice President said, “EAAIF was instrumental in the success of this process. Their support and involvement gave other investors confidence, resulting in our debut issuance being heavily oversubscribed. Launching the bond is a transformational moment for our company as we offer investors exposure in four dynamic African countries”.

    The transaction deepens Africa’s financial services landscape and diversifies fundraising sources for dynamic, fast-growth businesses. This bond issuance is the first by any corporate or state in two of Africell’s four established markets (The Gambia and Sierra Leone). It will provide international private investors with insight into these markets and create the opportunity for further, much-needed, foreign investment.  

    Tidiane Doucoure, Director, Emerging Market Alternative Credit at Ninety One Group, the Fund Manager of The Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private Infrastructure Development Group (PIDG) company, said: “We are proud to have acted as anchor investor on the successful first bond issuance of Africell. At PIDG and Ninety One, we firmly believe in the development of capital markets and the mobilisation of private capital in low and middle income countries. That’s the only viable way the trillions of dollars currently available in developed markets will be channeled to support the much needed economic and social growth for the six billion people living in emerging markets. We are honored by the trust of Africell, and our other partners, including the global banks that acted as bookrunners – JP Morgan, Citi, and Standard Bank.”

    Developing Africa’s capital markets is a key priority for the Private Infrastructure Development Group and Ninety One. In 2020, sub-Saharan Africa, excluding South Africa, contributed just 0.02% to the global stock of international bonds. This presents a tremendous opportunity for global investors and ambitious businesses to increase access to growth capital from debt capital markets. 

  • EAIF commits XOF 23.5 Billion to Sonatel’s Receivables-BackedAAA-Local-Rated Bond 

    EAIF commits XOF 23.5 Billion to Sonatel’s Receivables-BackedAAA-Local-Rated Bond 


    The Emerging Africa Infrastructure Fund (EAIF), a Private Infrastructure Development Group (PIDG) company, today announced a commitment of XOF 23.5 billion to a XOF 75 billion receivables-backed bond issued by securitisation vehicle Fonds Commun de Titrisation de Créance (FCTC), to support Sonatel’s expansion, modernisation and digital transformation plan in Senegal, and beyond.

    Sonatal is a leading West African telecommunications carrier with the largest network in Senegal. The group has developed one of Africa’s most extensive telecommunications networks and provides global telecommunications solutions in fixed and mobile telephony, mobile banking, television and internet services for individuals and businesses operating in Senegal, Mali, Guinea, Sierra Leone, and Guinea Bissau. 

    Proceeds from the bond will diversify Sonatel’s sources of funding and be broken into two “cells” – the first of which will be XOF 60 billion, in which EAIF will invest. The provision of finance unlocks fresh capital to boost the company’s network and improve its technology and equipment – supporting the deployment of digital infrastructure including subsea international cables, fibre to the home, cloud, new towers powered by hybrid and solar solutions and the roll-out of 5G across key markets.

    Sonatel’s commitment to expanding access to last-mile connections in new homes unlocks Africa’s disruptive potential – enabling digital access in areas underserved, in line with the PIDG ambition to achieve the United Nations Sustainable Development Goal 9, on Industry, Innovation and Infrastructure. 

    EAIF will act as an anchor investor alongside the International Finance Corporation (IFC), building on the Fund’s anchoring role in Sonatel’s oversubscribed bond issuance in 2020, where the group raised XOF 100 billion to extend and enlarge its 4G + network in urban and rural areas and to upgrade service platforms. Fulfilling a similar role in West Africa’s first-ever asset-backed security, the Fund and the IFC leverage their convening power and derisking abilities to mobilise private capital from local and regional investors through the innovative financing instrument, with Invictus Capital acting as arranger in the transaction. 

    The new bond issuance’s AAA rating enables Sonatel to fund from its balance sheet and encourages similar corporate issuances that stimulate the flow of international and domestic capital to pioneering African businesses. 

    Commenting on the transaction, Folatomi Fayemi, Investment Specialist at Ninety One, fund manager of the Emerging Africa Infrastructure Fund, said, “Sonatel is at the forefront of an exciting movement driving digital transformation and expanding connectivity where needed. Once again, we are proud to support Sonatel’s growth ambitions, enabled through capital markets innovation that unites international and local finance. This transaction provides a replicable and scalable model to stimulate economic growth and advance digital technologies, which supports efficiency, digital access and productivity across the African continent.”

    Olivier Buyoya, IFC Regional Director for West Africa, said, “IFC is proud to be part of such a milestone in the history of securitization in the region and the telecommunication field. Through this partnership, we will reach our joint objective of reducing the digital divide and positioning Senegal as a hub for digital transformation in the region, thus providing new growth opportunities for stakeholders and creating thousands of jobs in the telecommunications sector.” 

  • EAIF completes $294m debt raise in one of the largest blended finance debt packages for African infrastructure

    EAIF completes $294m debt raise in one of the largest blended finance debt packages for African infrastructure

    • EAIF announces ambitions to expand loan portfolio to south and south-eastern Asian markets
    • Moody’s reaffirms EAIF’s A2 credit rating

    Private Infrastructure Development Group (PIDG) company, the Emerging Africa Infrastructure Fund (EAIF), has successfully raised $294 million of additional debt facilities, achieving over half of the Fund’s target to raise $500 million by 2025. The finance facilities demonstrate the Fund’s ability to mobilise private sector debt in one of the largest capital raises in recent years, led by a blended finance debt fund advancing infrastructure development across Africa.

    Backed by prominent financial institutions, the package unlocks fresh capital to advance EAIF’s strategic, operational, and financial capabilities – enabling its investment portfolio to expand and meet rising opportunities in frontier and developing economies. The Fund will invest across various infrastructure assets, including those aligned with the energy transition, low-carbon economies, and energy-efficient smart cities. As a PIDG company, EAIF fulfils the Group’s key strategic priorities, focusing on pioneering infrastructure projects that offer an innovative, agile, and sustainable approach to delivering essential infrastructure services for economic development. 

    Allianz Global Investors led the financing on behalf of Allianz Group, one of the world’s leading insurers and asset managers, committing a further €75m and $50m to EAIF. Standard Bank, Africa’s largest lender by assets, provided a $75m multicurrency revolving credit facility with sustainability-linked features and a $25m sustainability-linked term debt facility. KfW, the German state-owned development bank, committed a further €60m loan to EAIF. 

    EAIF secured $385 million of debt capital in 2018, with KfW and Allianz among the participating lenders in the funding round, committing €75 million plus $50 million and €75 million and $25 million, respectively. The new finance package marks the maturity of Africa’s debt capital markets and illustrates the Fund’s ability to take on and manage risk while delivering sustainable returns and economic impact.

    Since EAIF’s establishment in 2001, the Fund and its partners have completed 96 projects and mobilised total investment commitments of over $2.1 billion across 20 African countries and 10 infrastructure sectors. Reinforcing its leading position as an attractive vehicle for investors seeking exposure to the growing African infrastructure asset class, Moody’s reaffirmed EAIF’s foreign currency long-term issuer rating of A2 with a stable outlook as a testament to its strong capital position, diverse portfolio, and track record of success in Africa. 

    PIDG plays a unique catalytic role in increasing private investors’ appetite for investing in emerging market infrastructure and responding to macroeconomic trends and the climate crisis. To create impact on an even greater scale, EAIF plans to start investing in Asian markets this year and work even more closely with PIDG’s guarantee arm GuarantCo, development arm InfraCo, and PIDG Technical Assistance as the Fund progressively expands its Asia portfolio over the coming years.

    Martijn Proos, Co-Head of Emerging Market Alternative Credit at Ninety One, the fund manager for the Emerging Africa Infrastructure Fund, said: “Over the last 20 years, we’ve developed a diverse portfolio, a unique business model and a distinct approach to investing for impact and returns, whilst maintaining a minimal default rate. The debt financing is a significant milestone and sign of private investor confidence that strengthens our ability to pioneer new models for infrastructure development – enabling the delivery of transformative projects in dynamic geographies, sectors and complex environments that otherwise would not be bankable. We thank Allianz, Standard Bank and KfW for their continued support. “

    Philippe Valahu, CEO of PIDG, said: “Action on climate and nature, together with sustainable development, through new and improved access to infrastructure are the central focus of everything we do at PIDG. Marking this significant milestone means we are contributing to the goal of improving climate resilience and economic opportunities for 100 million people by 2030, as outlined in our strategy. But the challenges ahead are too great for any single organisation or country and will require more collaboration. We look forward to being part of this journey alongside our key partners.”

    Aislinn Baker, Portfolio Manager, Development Finance, at AllianzGI, said: “We are delighted to see how the EAIF has been helping to unlock Africa’s potential over the last five years which underlines the decisive role private capital plays in blended finance. As one of the early movers in this area, we look forward to seeing how the projects financed by the EAIF will contribute to the further development of infrastructure assets and the energy transition on the continent and facilitate Allianz’s sustainable investment objectives in emerging markets.”

    Andrew Pearce, Head of Leveraged Finance, Corporate and Investment Banking at Standard Bank, said: “Standard Bank’s sustainability-linked loans for EAIF reaffirm our commitment to the sustainable economic development of Africa and align with Standard Bank, EAIF and Ninety One’s shared ambition. Our footprint and expertise across the continent demonstrate that we see Africa’s development as intricately tied to advancing its infrastructure. Through our partnerships, we provide innovative solutions that offer value and transform Africa’s economy. This facility aligns with our strategic objective to deliver structured capital solutions that combine our clients’ sustainability strategy with our banking solutions and enhance value for our clients, businesses, and society.”

    Dr. Thomas Duve, Director of Southern Africa at KfW Development Bank, said: “KfW has been financing EAIF since 2006 in various financing rounds as we strongly believe in the developmental impact that EAIF achieves. EAIF has clearly demonstrated that private sector financing can be mobilised to meet the substantial infrastructure needs in Sub-Saharan Africa if projects are structured adequately and experienced partners, such as EAIF, are part of the financing consortium.

    As the mobilisation of private capital is an important target for KfW, we are very pleased to notice that KfW’s financing share in the recent financing rounds is constantly decreasing as private sector institutions, such as AllianzGI and Standard Bank, are gradually taking over the financing of EAIF.”

  • EAIF extends €35 Million to bring Pioneering 46MW Biomass Power Plant in Côte D’Ivoire to Financial Close

    EAIF extends €35 Million to bring Pioneering 46MW Biomass Power Plant in Côte D’Ivoire to Financial Close

    …Project advances West Africa’s circular economy, boosts yields and incomes of local farmers

    The Emerging Africa Infrastructure Fund (EAIF), a Private Infrastructure Development Group (PIDG) company, today announced that it had officially broke ground on the pioneering 46MW biomass power station in Ayebo, Côte D’Ivoire, bringing clean power and a more diverse energy mix to the region.

    EAIF has provided a €35m senior loan facility to develop a 46MW biomass power plant in Côte d’Ivoire, the largest facility of its kind in West Africa. Biovea Energie will own and operate the plant when operational.

    The capital injection from EAIF, alongside commitments from lead arranger Proparco, a subsidiary of the French Development Agency, will advance the Ivorian energy sector’s net zero pathway and brings a first-of-its-kind project to financial close. PIDG, through its Technical Assistance programme, will support the project’s delivery through an €8m Viability Gap Funding grant, one of the largest it has deployed. 

    Expected to cut 4.5 million tonnes of CO2 emissions over its 25-year lifetime, the €237m venture is a breakthrough development in a dynamic energy sector. The project is expected to drive a demonstrative effect by signifying an innovative approach to achieve Côte d’Ivoire’s goal to generate 45% of energy from renewable resources by 2030.

    Biovea, owned by EDF International, Meridiam and SIFCA, has been awarded a 25-year power purchase agreement to supply the Ivorian grid. The new plant reinforces the government’s priority to expand access to electricity by 2025 – improving energy security in rural areas with an electrification rate as low as 38%.

    Located in Ayebo, 100km east of the capital, Abidjan – Biovea Energie’s project will benefit 1.7 million people. Approximately 12,000 will be local out-growers, supplying up to 70% of the palm tree leaves and branches that will fuel the power plant. Integrating local farmers into the supply chain diversifies their revenue and welcomes greater income security, boosting their earnings by an expected 15%. 

    While supporting longevity in income generation for out-growers, the project will also deliver economic opportunities during its construction phase. Development of the plant and accompanying transmission, transport and communications infrastructure will generate 500 jobs. An additional 1,000 roles will uplift the local economy once Biovea Energie commissions the project.

    Maximising impact is a critical objective for the partners of the project, which extends to circularity in the supply chain. Preventing environmental harm by promoting the reuse of 520,000 tonnes of agricultural residue that would otherwise be discarded, the project signifies the potential for more regenerative economies. Once processed to power the turbines in the plant, ashes of the residue will be provided to farmers and used as a natural fertiliser for crops – enabling the uptake of more sustainable farming practices that boost yields.

    Establishing energy security in the country impacts those nearby, as the country’s evolving energy market serves as an essential exporter of electricity to six of its neighbouring countries.

    Once commissioned, the plants will align with PIDG’s commitment to the UN’s Sustainable Development Goal on Access to Clean and Affordable Energy (SDG 7). They are a demonstration of the multifaceted approach needed to propel green growth on the continent and exhibit how participation across the value chain can enhance diverse levels of development. 

    Commenting on the transaction, Olivia Carballo from Ninety One, fund manager of the Emerging Africa Infrastructure Fund, said: “As such a crucial energy market to one of the continent’s most important production hubs, impacts of a greener economy extend beyond the borders of Côte d’Ivoire. It is emblematic of the many resources we can leverage to accelerate growth across Africa and do so inclusively while contributing to the sustainability of thousands of livelihoods in the area.”

    Biovea Energie’s CFO, Franck KOBLAVI, commented: “We are delighted to close the deal as it has been highly anticipated and moves us closer to evolving the country’s energy mix and progressing an ambitious but attainable sustainability agenda. Working with best-in-class partners has ensured deep deliberation to other aspects of creating impact and will ensure quality service delivery from investment to energy production.”  

  • Emerging Africa Infrastructure Fund Commits €25 Million to 44mw Hydropower Plant in Côte d’Ivoire

    Emerging Africa Infrastructure Fund Commits €25 Million to 44mw Hydropower Plant in Côte d’Ivoire

    …€174 million project is Côte d’Ivoire’s first hydro-electric development by an independent power producer; will provide 217 gigawatt hours (GWh) of capacity per annum

    Private Infrastructure Development Group (PIDG) company, the Emerging Africa Infrastructure Fund (EAIF), today announced a €25 million finance facility to Ivoire Hydro Energy (IHE), which will build a 44MW hydro electricity generation plant on the Bandama River near the village of Singrobo in Côte d’Ivoire.

    EAIF’s long-term financing package enables IHE to achieve financial close for the project, catalysing the design, construction and operation of the power plant and associated infrastructure and boosting rural access to clean energy.

    The new plant will be an essential strategic economic asset for Côte d’Ivoire, where electrification rates range from 88% in urban areas to as low as 31% in rural parts of the country. By displacing expensive peak-time diesel production and reducing CO2 emissions by 124,000 tons per annum, the plant is also integral to the government’s efforts to achieve the UN’s Sustainable Development Goals on Climate Action (SDG 13) and on Affordable and Clean Energy (SDG 7).

    The construction of the plant – as well as 3km of access roads and a 4km 90 kV transmission line and substation to connect the hydropower plant to the existing Taabo-Agboville transmission line – will generate over 500 jobs.

    Paromita Chatterjee, Investment Director at Ninety One, the fund manager for EAIF, noted: “The new facility at Singrobo will be Cote d’Ivoire’s first hydro-electric development by an independent power producer. We are excited that it delivers on three of PIDG’s strategic objectives: mobilising private capital, enabling economic development and contributing to increasing Africa’s stock of renewable energy infrastructure.”

    The Singrobo plant catalyses the Ivorian government’s strategic plan for the development of the electricity sector, which aims to increase the total installed capacity to 4.2 GW (from approximately 2.2 GW currently) by 2030 mainly through Public-Private Partnerships, reaffirming EAIF’s role as a pathfinder supporting the development of nascent renewable energy markets. A long-term power purchase agreement will see all of the energy produced by the Singrobo plant sold to Compagnie Ivoirienne d’Electricité, the operator of Côte d’Ivoire’s national grid.  In addition to closing the rural energy access gap and strengthening economic productivity, the plant’s flexible operating model enhances grid resilience, meaning it may be called in to meet baseload and peak demand.

    The African Development Bank (AfDB) acted as the mandated lead arranger of the debt finance and will be a senior lender in its own right. In addition to AfDB and EAIF, the other lenders are the German international development agency, DEG and the Africa Finance Corporation (AFC). Furthermore, 25% of the project cost is funded by equity from the project’s shareholders, IHE Holding, the Africa Finance Corporation and DIPFA, a Denham Capital-owned international investment platform for power projects. Neo Themis SARL is advising and acting for the shareholders in relation to finalising the project’s development and the financing agreements.

    The project site is located on the Bandama River, 23 km downstream of the existing Taabo Dam and upstream of the confluence of the Nzi River. It is 3.5 km from the Singrobo village in the province of Taabo and 148 km by road from Côte d’Ivoire’s capital city, Abidjan. 

  • The Emerging Africa Infrastructure Fund secures A2 credit rating from Moody’s

    The Emerging Africa Infrastructure Fund secures A2 credit rating from Moody’s

    • …rating affirms EAIF’s strong capital position, moderate leverage, diversified portfolio, and strong shareholder base.

    Private Infrastructure Development Group (PIDG) company, the Emerging Africa Infrastructure Fund (EAIF or The Fund), today announced that Moody’s has assigned EAIF a foreign currency long-term issuer rating of A2 with a stable outlook.

    EAIF mobilises public and private debt capital to deliver transformative infrastructure in sub-Saharan Africa. Since its establishment in 2001, up to December 2021, EAIF has closed 90 projects for a total investment of $2.1 billion and mobilised private sector investment commitments of $15.2 billion.

    International Rating Agency Moody’s confirmed that the main factors underpinning the EAIF’s A2 rating are:

    1. A strong capital position that reflects moderate but rising leverage, and a diversified lending portfolio notwithstanding weak asset credit quality;

    2. A robust base of liquid assets stemming from highly-rated development finance institutions and commercial lenders;

    3. A high level of member support from a base of highly-rated shareholders, reflecting EAIF’s strategic position in the broader Private Infrastructure Development Group (PIDG).

    The rating affirms EAIF’s leading position as an attractive vehicle for investors seeking exposure to the burgeoning African infrastructure asset class, with strong Health, Safety, Environment and Security (HSES) performance, a proven ability to generate sustainable development impact and significant downside mitigation due to strong anchor support from four European governments.

    EAIF’s unique blended finance model is backed by leading development finance institutions and commercial and institutional lenders, with a dual mandate to deliver commercially competitive returns and sustainable impact. The Fund has received US$395m of equity capital from four Governments (United Kingdom, Switzerland, the Netherlands, and Sweden) through the Private Infrastructure Development Group. Retained earnings are over US$100m and have been recycled back into the Fund. The Fund’s loss rate has been low, demonstrating the essentiality and commercially conservative financing structures of the projects it funds.

    Martijn Proos, Director at Ninety One, the fund manager of the Emerging Africa Infrastructure Fund, said: “We are proud to initiate a rating with Moody’s, which recognises the Fund’s unique business model, 20-year track record of success and conservatively levered balance sheet. The A2 rating evidences our ability to take on and proactively manage risk to deliver returns and generate sustainable development impact. We are committed to building our diversified portfolio as we ramp up vital funding for strategic projects that boost Africa’s resilience. This rating will assist us to further diversify the types and sources of funding we can access as we build our business in the years to come.”

    EAIF’s current committed loan portfolio is US$ 1.15bn and diversification is strong, with projects spread across 17 African countries and 9 infrastructure sectors (digital communications infrastructure, energy generation, transmission and distribution, gas transportation, distribution and storage, bulk storage and logistics facilities, infrastructure for agribusiness and mining, transportation, affordable housing, manufacturing of infrastructure components and equipment, water, sewage and sanitation). An estimated 151.4 million people across Africa are benefitting from EAIF-funded projects.