• EDFI newsletter May 2015

  • 21 May 2015
  • PROPARCO, DEG and FMO invest in “climate” projects in Latin America

    PROPARCO has made a USD 15 mln equity investment in Americas Energy Funds II Clean Energy (AEF), alongside IFC, Asset Management Company (IFC’s fund management business), DEG (USD 13 mln) and FMO (USD 25 mln). This USD 103 mln fund is managed by SCLEA and is designed to invest in renewable energy and energy efficiency projects (fuel switch), mainly in Chile, Peru and Colombia.

    The creation of AEF II addresses increasing energy demand in Latin America and the proactive policy of several countries to reduce their greenhouse gas emissions.

    PROPARCO’s involvement has strengthened the fund’s investment policy in terms of fighting climate change. For example, it has supported the introduction of a tool that measures carbon emissions of the projects before any investment, the recruitment of an environmental and social expert and the creation of a Committee, in which PROPARCO will hold a seat alongside other investor, in order to assess the eligibility of projects to the investment policy.

    For more information please visit Proparco’s website

  • EDFI newsletter April 2015

  • 21 May 2015
  • OeEB, FMO, Proparco take part in the financing of Central America's largest wind farm

    OeEB together with FMO, Proparco, IFC and other DFIs provides financing for the largest wind farm in Central America. OeEB contributes USD 25 million for the construction of the Penonome wind farm in Panama.

    More than half of Panama's electricity is generated from hydropower plants, making the power sector vulnerable during the dry season. This often results in power outages and rationing as well as in a high dependence on expensive fossil fuel imports during the dry season. With a capacity of 215 MW the Penonome wind farm in the province of Coclé, 100 km south of Panama City, is expected to generate 448 GWh of energy per year, equivalent to around 5 percent of the country's total energy demand.

    It will help diversify the country's energy matrix and complement the hydro-based energy generation, since the dry months are also the windiest. Moreover, energy generated from the project will help to ease the country's dependence on imported fossil fuels which contributes to lowering electricity prices and to reducing carbon emissions.

    For more information, please visit OeEB’ website

  • EDFI newsletter March 2015

  • 21 May 2015
  • KfW and BIO MSMEs in the DRC

    FPM SA (Fonds pour l’inclusion financière en République Démocratique du Congo) obtained the authorization by the Central Bank of Congo to operate as a Financial Company. FPM SA will be able to start financing the financial institutions targeting MSMEs in the  DRC. This new financial instrument complements “FPM ASBL”, operating in the DRC since 2007 and focusing on providing Technical Assistance to the Congolese financial institutions that FPM SA is targeting.

    FPM SA benefits from capital contribution of  KfW (USD 13 mln), BIO (USD 8 mln), the Dutch Catholic Organization for Relief and Development Aid (Cordaid) (USD 4 mln) and the Belgian microfinance fund Incofin CVSO ( USD 100k). The Belgian Incofin Investment Management acts as the fund advisor for FPM SA, bringing on board its specific experience and knowledge of the financial services market for micro, small and medium enterprises.

    For more information, please visit BIO’s website or KFW’s website

  • EDFI newsletter February 2015

  • 21 May 2015
  • DEG, FMO and Swedfund invest in Ghana

    Access to financial services is one of the major constraints for development in Ghana. DEG, FMO, Swedfund and the European Financing Partners (EFP) invested in the Ghanaian Fidelity Bank. DEG arranged a USD 60 mln long-term loan together with FMO (USD 18.5 mln), Swedfund (USD 14 mln) and European Financing Partners (EFP) (USD 9 mln).

    With a network of 45 branches and more than 1.500 employees, Fidelity Bank is one of the leading banks in Ghana. The financing will help the bank further expand its SME business.

    For more information, please visit DEG' website

  • EDFI newsletter January 2015

  • 21 May 2015
  • PROPARCO, FMO and DEG partner with AKFED to support economic development in Southern countries

    PROPARCO, FMO and DEG signed a 12-year loan facility of USD 189m with the Aga Khan Fund for Economic Development (AKFED) to support economic and social development through the funding of projects in sectors such as finance, infrastructure, industry, tourism and aviation in Africa, the Middle East and South and Central Asia.

    AKFED is one of the agencies of the Aga Khan Development Network (AKDN) and is dedicated to promoting entrepreneurship and to building economically sound enterprises in the developing world. It operates a network of affiliates with more than 90 project companies in 17 countries, making bold but calculated investments in situations that are fragile and complex, such as in Afghanistan where it assists in the reconstruction and post-war context.

    Over the years, AKFED’s collaboration with EDFI members has resulted in a number of pioneering projects to sustain and support critical sectors, whilst building up essential industries.

    For more information, please visit PROPARCO's website

  • EDFI newsletter December 2014

  • 21 May 2015
  • BIO, CDC and FMO supports renewable energy in Africa

    BIO, FMO and CDC, are participating in the Africa Renewable Energy Fund (AREF), a USD 200 mln equity fund for renewable energy in sub-Saharan Africa. AREF focusses on power generation using renewable energy resources from remote areas in “least developed countries” and “low income countries” as defined by OECD. These countries lack access to long term financing for energy and infrastructure investments. The developmental impact of the project is high as the project will contribute to the enhancement of investments in power generating infrastructure, which is essential as the needs will continue to increase.

    The fund is an initiative of the African Development Bank with an important contribution of the Sustainable Energy Fund for Africa both in funding and technical assistance to assist the fund in financing certain project development costs.

    For more information, please visit BIO’s website

  • EDFI newsletter November 2014

  • 21 May 2015
  • Seven EDFI members invest in African SME fund

    CDC, DEG, Finnfund, FMO, PROPARCO, SIFEM and Swedfund have together committed EUR 97 mln to AfricInvest Fund III. AfricInvest Fund III is a sub-Saharan Africa-focused private equity fund, with a target size of EUR 200 mln The Fund will invest in well-established SMEs that demonstrate the potential to scale-up their activities on a regional level. In addition to generating risk-adjusted returns for its investors, the Fund will create sustainable employment opportunities for thousands of people in Africa, contribute to regional economic integration and increase tax revenues for local governments.

    The Fund will focus on Western and Eastern African countries and invest in a broad range of businesses, with a strong focus on manufacturing for export and companies aiming to expand at the regional or continental level. In addition, the Fund will work towards promoting environmental, social and governance best practices in its portfolio companies. Targeted sectors will include IT and telecoms, services, health, education, transport and agribusiness.

    The Fund is managed by the AfricInvest Group, which was founded in 1994 and currently manages 13 private equity funds across North and Sub-Sahara Africa.

    For more information, please visit SIFEM's website and CDC's website

  • EDFI newsletter October 2014

  • 06 October 2014
  • EDFI granted observer status to the Green Climate Fund

    Climate finance remains a top priority for EDFI members. Since 2009, EDFI members have invested more than EUR 3,9 billion in climate finance projects and will continue to provide secure, adapted and reliable financing for renewable energy or energy efficiency projects in the future. The Green Climate Fund accredited EDFI as observer to the Fund in September.

    The Green Climate Fund is a new multilateral fund which will contribute to the achievement of the ultimate objective of the United Nations Framework Convention on Climate Change (UNFCCC).

    Given the urgency and seriousness of climate change, the purpose of the Fund is to make a significant and ambitious contribution to the global efforts towards attaining the goals set by the international community to combat climate change.

    For more information, please visit the Green Climate Fund website

    • EDFI newsletter - October 2014 (6.89mb) Download
  • EDFI newsletter June 2014

  • 11 June 2014
  • DEG, together with FMO and PROPARCO, launches SME Finance Innovation Award

    Small and medium-sized enterprises (SME) are important engines of growth and job creation around the world. However, access to finance, especially the lack of innovative financial products, represents one of the greatest challenges for SME in developing and emerging markets. SME are often too small to attract the interest of commercial banks or investors, but too large to benefit from microfinance products. Until now, only a few scalable solutions to support this “missing middle” of the economy have been found.

    Read the Newsletter online

    • EDFI newsletter - June 2014 (3.25mb) Download
  • EDFI newsletter - August 2014

  • 01 August 2014
  • FMO and DEG support Sustainable Finance practices in Kenya

    FMO and DEG have agreed on a joint partnership through which the two institutions will fund a capacity building program for Sustainable Finance to be coordinated by the Kenya Bankers Association (KBA). The program will consist of training and workshops targeting bank credit risk managers and business development managers.

    • EDFI newsletter - August 2014 (1.64mb) Download