Private debt investment manager Acre Impact Capital has announced the first closing of its Export Finance Fund I with commitments of $100m (£80.3m), and a target size of $300m.
The fund has attracted a diverse group of investors including institutional investors, family offices and impact-first investors such as Trimtab Impact and Ceniarth.
Major development finance institutions have also invested, including the European Investment Bank and FSD Africa Investments. The fund has also secured commitments from several African investors.
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Acre Impact Capital’s innovative Export Finance Fund I is the first of its kind to leverage the transaction facilitation role of export credit agencies (ECAs) for impact.
Export finance delivers long-term debt financing guaranteed by official ECAs, allowing project sponsors to reduce the cost of debt by obtaining attractive funding on ECA-backed financing and extending tenors up to 22 years.
The fund addresses a financing gap for African climate-aligned infrastructure. While commercial banks typically fund the tranche guaranteed by an ECA (worth 85 per cent of the project value), funding for the remaining 15 per cent has been increasingly scarce.
By providing specialist funding for this tranche, the fund will unlock transactions and mobilise $5.6 of private sector capital for each dollar invested.
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“The current credit environment creates attractive opportunities for discerning investors, while addressing the urgent need for funding for climate-aligned infrastructure projects,” said Acre Impact Capital chief executive Hussein Sefian.
“The Fund aims to invest in 15-20 projects in four thematic areas: renewable power; health, food and water scarcity; sustainable cities and green transportation. These projects will deliver significant environmental and social impact while providing investors with desirable diversification.”
Acre Impact Capital has said it is committed to maintaining gender balance and creating a culture that values diversity and inclusion, this includes a commitment to at least 30 per cent of its portfolio of projects meeting the 2X Criteria towards a global baseline standard for gender finance.
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