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Tuesday, June 18, 2024

RMB Invests in Acre Export Finance Fund to Drive Local weather-Aligned Infrastructure in Africa

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RMB considered one of Africa’s main company and funding banks, has invested in Acre Export Finance Fund I which targets business debt tranches of Export Credit score Company (ECA) transactions supporting climate-aligned infrastructure in Africa.

The fund has introduced its first shut on seventeenth of April during which it has efficiently raised an fairness of ~$100m which might be used to half finance initiatives in 4 impression sectors: renewable energy era, well being, meals and water shortage – in addition to sustainable cities and inexperienced transportation.

By offering specialist funding for the business debt tranche and consequently unlocking the ECA assured a part of the transaction, the fund will allow the mobilisation of as much as $2bln towards impression initiatives.

ECA finance, by enabling entry to long-term debt for debtors in rising markets, is seen as a key contributor to the discount of the infrastructure financing hole in Africa, which is estimated to be over $100 billion yearly.

Aymeric Perrin-Guinot, Senior Transactor ECA Finance, RMB London

Siyanda Mflathelwa, Sector Head of PPPs and Concessions at RMB famous that the fund fills a selected hole out there which is the funding of the uncovered portion of ECA transactions, which has turn into more and more tough to fund. Thereby unlocking transactions that can have a multiplier impact on the economies of the nations the place it’s deployed.

The IMF has just lately famous that for each $1m invested in infrastructure initiatives, between 8 and 30 jobs are created in low earnings growing nations.

Acre Export Finance Fund will align all its investments with the UN’s 17 Sustainable Growth Targets (SDGs) and leverage industry-leading frameworks for impression reporting.

Perrin-Guinot added that RMB’s funding within the fund is a superb instance of African banks contributing to options to African issues.

RMB’s funding within the Fund demonstrates the optimistic function that African monetary establishments are enjoying in supporting the financing of climate-aligned important infrastructure in Africa. We’re happy to have obtained commitments from premier African buyers reminiscent of RMB.

Hussein Sefian, CEO, Acre Influence Capital


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