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Allianz becomes EAIF’s first commercial institutional investor

Anna Lyudvig
April 10, 2018, 10:21 p.m.
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Allianz, a global insurer, has provided financing of €75m and $25m, both over 12 years, to the Emerging Africa Infrastructure Fund (EAIF), becoming the fund’s first insurance-investor. 

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Allianz, a global insurer, has provided financing of €75m and $25m, both over 12 years, to the Emerging Africa Infrastructure Fund (EAIF), becoming the fund’s first insurance-investor. 

Nadia Nikolova, Director, Infrastructure Debt at Allianz GI, said: “We are delighted to put our infrastructure debt expertise to work to help facilitate Allianz’ investment strategy in Africa.  Over the last five years, our global infrastructure debt platform has invested over €10bn into infrastructure projects across the globe.  As Africa unlocks its economic potential, the continent will become increasingly important for institutional investors.”
 
Overall, the EAIF has raised $385m in its latest fundraising round in new long-term debt capital to invest in Africa.  

The new funds will be used over the next five years to continue EAIF’s core strategy of mobilising private sector capital for investment in infrastructure projects, mainly in fragile states.
 
The lending group on the fundraising are existing lenders KfW, the German development bank, FMO, the Dutch development finance institution, and Standard Chartered Bank. 

Moreover, the African Development Bank (AfDB) returns as a lender, providing a total of $75m over ten years.

Standard Chartered Bank is increasing and extending its existing lending to $50m, whereas KFW is contributing $50m and €75m, both over 12 years, and FMO is lending $50m over ten years.
 
"We are pleased to expand our commitment to the EAIF. This partnership and the investments in renewable energy and cleaner technologies strengthen economic development across large parts of the African continent and improve the quality of life of those living there,“ said Helmut Gauges, Head of the Africa/Middle East Directorate at KfW Development Bank.

Since winning EAIF’s fund management mandate in 2016, Investec Asset Management has delivered all of the key performance indicators set for the Fund.
 
Nazmeera Moola, Head of EAIF at IAM, said: “Bringing the vision and support of a lender of Allianz’s calibre on board represents a milestone in terms of mobilising private capital into infrastructure projects across the continent. This debt raising exemplifies the gains to be made from PIDG’s blended finance approach.  IAM has a successful track record of co-investing private and public funds side by side in both private credit and private equity funds in Africa.”  
 
“EAIF ended 2017 with ten new transactions signed, representing approximately $200m in loan commitments and bringing EAIF’s committed loan portfolio to $750m. The Fund is rapidly approaching having 45 active projects in its portfolio, making it one of the leading suppliers of debt finance to private sector infrastructure projects in sub-Saharan Africa.”
 
Since its foundation, EAIF has invested around $1.3bn, which has been instrumental in attracting over $10.9bn of private capital investment to over 70 projects in some 22 sub-Saharan countries. 

The EAIF portfolio has also been mapped against the UN’s Sustainable Development Goals, ensuring that projects can directly, demonstrably and quantifiably contribute to positive impact across the continent.

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