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Rockefeller Foundation & PIDG back Acre Impact Capital

Africa Global Funds
May 4, 2021, 10:45 p.m.
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The Rockefeller Foundation and the Private Infrastructure Development Group (PIDG), through its company GuarantCo, have invested in Acre Impact Capital, an impact-focused investment manager.

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The Rockefeller Foundation and the Private Infrastructure Development Group (PIDG), through its company GuarantCo, have invested in Acre Impact Capital, an impact-focused investment manager.

“We are excited about the potential of Acre Impact Capital high impact and innovative strategy, which leverages the ECA market to mobilise largescale capital and address the huge financing gap for emerging market infrastructure,” said Maria Kozloski, Senior Vice President of Innovative Finance at The Rockefeller Foundation.

Founded in 2019, Acre Impact Capital invests in growth-stage, climate-aligned infrastructure in emerging markets by partnering with leading commercial lenders and export credit agencies (ECAs).

The investment will accelerate Acre Impact Capital’s strategic growth plans and support the launch of a number of private debt impact funds focused on the export finance market.

Acre Impact Capital provides underserved communities in Africa access to essential services, through its investments in infrastructure sectors such as healthcare, education, social housing, transport, renewable power, agriculture, water and sanitation, waste management, climate adaptation, and technology/digital infrastructure.

By investing alongside long-established ECAs, Acre Impact Capital aims to achieve risk-adjusted market-rate returns, while minimizing risks often associated with developing infrastructure in emerging markets.

“We are thrilled to enter into a long-term partnership with aligned investors such as The Rockefeller Foundation and PIDG to advance Acre Impact Capital’s mission to provide access to essential services to underserved communities and contribute to reducing the infrastructure financing gap in Africa, which is estimated to be over $100 billion every year,” said Hussein Sefian, Founding Partner at Acre Impact Capital.

“Our funds invest in a commercial loan tranche of approximately 15% of each transaction, which needs to be in place before an ECA can provide a guarantee on the remaining 85% of the debt. Lack of bank funding on this commercial tranche – which has worsened since the beginning of the COVID-19 pandemic – prevents the completion of many otherwise bankable transactions. By providing funding for this tranche, our funds will unlock transactions, mobilise up to $5.6 of private sector capital for each dollar invested and provide institutional and impact investors with exposure to a new asset class: export finance loans.”

PIDG’s investment is made through GuarantCo and is supported by PIDG Technical Assistance (TA) funding PIDG TA provides technical assistance and capital grants to the PIDG companies to support their activities and meet a range of needs associated with an infrastructure project’s life-cycle.

“We are delighted to have been associated with the Acre Impact Capital project since its inception and to have supported the team in the development of such an innovative concept together with our friends at The Rockefeller Foundation. Through the use of PIDG Technical Assistance funding, we are proud to have been able to contribute to the initial capital required to enable Acre Impact Capital to be launched which demonstrates the power of strong partnerships and collaboration in delivering sustainable infrastructure in the countries where we can make a real difference,” said Emilio Cattaneo, Director at PIDG Technical Assistance.

 “This transaction is a great example of complementary public sector and philanthropic partnership joining forces to work together towards a common goal and where blended finance can mobilise commercial sources of finance to support the SDGs. It demonstrates the strength of the PIDG group working closely together with The Rockefeller Foundation in order to deliver essential infrastructure to drive economic growth and sustainably build a more prosperous future for people in Africa who need it most”, said Lasitha Perera, CEO at GuarantCo.

 

 

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