MONDAY, 12 JULY 2010

 

Emerging Africa Infrastructure Fund (EAIF), has increased its funding capacity to $600 million, following the signing of a new credit line with the International Finance Corporation, African Development Bank and the Austrian Development Bank.

 

This is the third occasion on which EAIF has increased its capacity since its establishment in 2002 with an initial fund size of $305 million. The Fund has a successful track record of financing infrastructure projects in Sub-Saharan Africa having completed 28 transactions across a range of sectors.

 

Commenting on the extra capacity EAIF Chairman, Tony Lea, said: “We are delighted to have the endorsement of major international finance institutions for EAIF’s project finance activities. EAIF has a strong project pipeline and the new funding will enable the Fund to continue with its mandate to support economic development in Sub-Saharan Africa.”

 

Frontier Markets Fund Managers (FMFM), the manager of EAIF, provided advisory support for the Fund throughout the negotiations with the new lenders. FMFM is a division of Standard Bank Plc.EAIF, established in January 2002, aims to address the lack of available long-term foreign currency debt finance for infrastructure projects in Sub-Saharan Africa. EAIF offers USD and EUR lending to private companies (or soon to be privatised companies) for greenfield projects or for refurbishment, upgrade or expansion of existing facilities. 

 

While EAIF lends on commercial terms, it aims to support projects that promote economic growth and reduce poverty, benefit broad-based population groups, address issues of equity and participation, and promote social, economic and cultural rights.Emerging Africa Infrastructure Fund is advised by Frontier Markets Fund Managers (“FMFM”).  FMFM is a division of Standard Bank Plc which is authorised and regulated by the Financial Services Authority.

 

(Source:Guardian)