Acre Impact Capital Announces the First Closing of its Export Finance Fund I
April 17 2024 - 3:03AM
Business Wire
Acre Impact Capital, a private-debt impact investment manager
announces the first closing of its Export Finance Fund I (the
“Fund”), with commitments of ~US$100mn, with a target size of
US$300mn.
The Fund has attracted a diverse group of investors including
institutional investors, major Development Finance Institutions
(DFIs), family offices and impact-first investors such as Trimtab
Impact and Ceniarth. DFIs include the European Investment Bank and
FSD Africa Investments. The Fund has also secured significant
commitments from several African investors, reflecting the
attractive risk-return profile and expected impact of the
strategy.
Addressing the urgent need for climate infrastructure
investment
Acre Impact Capital’s innovative Export Finance Fund I is the
first fund of its kind leveraging the transaction facilitation role
of export credit agencies (“ECAs”) for impact. Export finance
delivers long-term debt financing guaranteed by official ECAs,
allowing project sponsors to significantly reduce the cost of debt
by obtaining attractive funding on ECA-backed financing and
extending tenors up to 22 years. In doing so, ECAs significantly
enhance project affordability and crowd-in private capital.
The Fund addresses a critical financing gap for African
climate-aligned infrastructure. While commercial banks typically
fund the tranche guaranteed by an ECA (worth 85% of the project
value), funding for the remaining 15% commercial debt tranche has
been increasingly scarce. By providing specialist funding for this
tranche, the Fund will unlock transactions and mobilise $5.6 of
private sector capital for each dollar invested.
“We are incredibly proud to have received support from our
limited partners, who have backed our pioneering Export Finance
Fund I. The current credit environment creates attractive
opportunities for discerning investors, while addressing the urgent
need for funding for climate-aligned infrastructure projects.” said
Hussein Sefian, CEO of Acre Impact Capital. “The Fund aims to
invest in 15-20 projects in four thematic areas: (i) Renewable
Power; (ii) Health, Food and Water Scarcity; (iii) Sustainable
Cities and (iv) Green Transportation. These projects will deliver
significant environmental and social impact while providing
investors with desirable diversification.”
Commitment to 2X Challenge
The Fund is committed to gender smart investing and seeks to
ensure at least 30% of its portfolio of projects meet the 2X
Criteria, increasing the number of women represented across its
investment portfolio. In addition, Acre Impact Capital commits to
promote and maintain gender balance at the fund manager and
creating a culture that values diversity and inclusion.
Acre Impact Capital is a recipient of Technical Assistance from
United States Agency for International Development (USAID)'s
Scaling-Up Renewable Energy (SURE) programme to support the
integration of the gender equality and social inclusion in its
investment processes.
About Acre Impact Capital
Acre Impact Capital invests in climate-aligned essential
infrastructure by partnering with leading commercial lenders and
export credit agencies. Acre Impact Capital’s Export Finance Fund I
addresses the estimated $100 billion annual infrastructure
financing gap in Africa, driving economic growth and providing
essential services for underserved populations.
Acre Impact Capital’s development was supported by funding
provided by the Private Infrastructure Development Group’s (PIDG)
Technical Assistance, through PIDG Company GuarantCo. PIDG is an
innovative finance organisation funded by the governments of the
UK, the Netherlands, Switzerland, Australia, Sweden, Germany and
the IFC. Support for the design and development of the Fund was
provided by The Rockefeller Foundation.
Website: https://www.acre.capital/ LinkedIn:
https://www.linkedin.com/company/acre-impact-capital
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version on businesswire.com: https://www.businesswire.com/news/home/20240417910656/en/
Press Enquiries: Hussein Sefian, CEO and Founding Partner
press@acre.capital