The Emerging Africa & Asia Infrastructure Fund (EAAIF) has raised $325 million in new debt facilities to bring its recent commitments to $620 million, exceeding the original $500-million target.
Allianz Global Investors led the financing with a 100-million-euro ($113-million) commitment, the fund said in a statement. Allianz was joined by Sumitomo Mitsui Banking Corporation; Swedfund; South Africa’s ABSA; and Standard Bank, Africa’s largest lender by assets.
The financing will enable $1 billion of investments by EAAIF in next-generation infrastructure across Africa and Asia by 2028, it said.
“The successful debt raise comes at a critical time. The Asia-Pacific region alone faces a shortfall of at least $800 billion in climate financing, while just about 23% of Africa’s climate finance needs are currently met,” the fund added.
EAAIF is a blended finance vehicle that provides debts to infrastructure projects in low-income countries across Africa and Asia. It is part of the Private Infrastructure Development Group (PIDG), which is also known for InfraCo–a unit investing in early-stage project development and project and corporate equity.
EAAIF expanded its mandate to South and Southeast Asia late last year and subsequently invested in Vietnam-based rooftop solar company CME Solar and a Pakistani sustainable aviation fuel facility.
In a recent interview with DealStreetAsia, the fund manager said it plans to build out its Asia exposure to about a third of the total fund size over the next 2-3 years.
Since its inception in 2001, EAAIF has committed over $3 billion to more than 125 infrastructure projects in Africa and Asia.
“This milestone is a significant step forward for PIDG, which aims to deliver $9 billion in new commitments for infrastructure and mobilise $25 billion in additional finance by 2030,” said Philippe Valahu, CEO of PIDG.
