FSD Africa commits $19.5m investment to green project financing

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FSD Africa Investments (FSDAi), the investing arm of FSD Africa, said $19.5 million investment has been committed to supporting climate adaptation and climate-aligned infrastructure projects in Africa to promote the continent’s climate programmes. [ad] According to the body, the new commitment includes $12 million in Acre Impact Capital’s Export Finance Fund I, the first to address the lack of commercial debt financing for sustainable infrastructure projects guaranteed by official Export Credit Agencies (ECAs).

FSD Africa Investments , the investing arm of FSD Africa, said $19.5 million investment has been committed to supporting climate adaptation and climate-aligned infrastructure projects in Africa to promote the continent’s climate programmes. According to the body, the new commitment includes $12 million in Acre Impact Capital’s Export Finance Fund I, the first to address…FSD Africa Investments , the investing arm of FSD Africa, said $19.

Financing from ECAs, it said, reduces the cost of debt and makes infrastructure projects more affordable. FSDAi’s investment in Acre will facilitate the flow of ECA finance for social and green infrastructure, mobilising $ 67 million directly related to FSDAi’s investment, providing improved access to essential services for over 500,000 people and generating over 2,000 jobs.

One of FSDAi’s distinctive features is its mandate to take significant investment risk. FSDAi fills a vital funding gap by assuming the commercial risk of novel financial solutions that neither development finance institutions nor private investors are prepared to take.

 

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