RMB one of Africa’s leading corporate and investment banks, has invested in Acre Export Finance Fund I which targets commercial debt tranches of Export Credit Agency (ECA) transactions supporting climate-aligned infrastructure in Africa.
The fund has announced its first close on 17th of April in which it has successfully raised an equity of ~$100m which will be used to part finance projects in four impact sectors: renewable power generation, health, food and water scarcity – as well as sustainable cities and green transportation.
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Aymeric Perrin-Guinot, Senior Transactor ECA Finance at RMB London said: “By providing specialist funding for the commercial debt tranche and as a result unlocking the ECA guaranteed part of the transaction, the fund will enable the mobilisation of up to $2bln toward impact projects.”
“ECA finance, by enabling access to long-term debt for borrowers in emerging markets, is seen as a key contributor to the reduction of the infrastructure financing gap in Africa, which is estimated to be over $100 billion every year.”
Siyanda Mflathelwa, Sector Head of PPPs and Concessions at RMB noted that the fund fills a specific gap in the market which is the funding of the uncovered portion of ECA transactions, which has become increasingly difficult to fund. Thereby unlocking transactions that will have a multiplier effect on the economies of the countries where it is deployed.
We are pleased to have received commitments from premier African investors such as RMB
The IMF has recently noted that for every $1m invested in infrastructure projects, between 8 and 30 jobs are created in low income developing countries.
“In addition, the fund is expected to have a significant positive social, environmental and economic impact, underlining RMB’s own ambitions in sustainable finance and our commitment to support Africa’s transition to a lower carbon economy in line with the Paris Agreement.”
Acre Export Finance Fund will align all its investments with the UN’s 17 Sustainable Development Goals (SDGs) and leverage industry-leading frameworks for impact reporting.
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Perrin-Guinot added that RMB’s investment in the fund is a great example of African banks contributing to solutions to African problems.
Hussein Sefian, CEO of Acre Impact Capital said: “RMB’s investment in the Fund demonstrates the positive role that African financial institutions are playing in supporting the financing of climate-aligned essential infrastructure in Africa. We are pleased to have received commitments from premier African investors such as RMB.”
