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June 20, 2024
PI Global Investments

PIDG completes $294 million debt raising for African infrastructure | The Guardian Nigeria News

Private Infrastructure Development Group (PIDG) company, an emerging African infrastructure fund (EAIF), has successfully raised $294 million of additional debt facilities, achieving over half of the fund’s target to raise $500 million by 2025.

The facility demonstrates the fund’s ability to mobilise private sector debt in one of the largest capital raises in recent years, led by a blended finance debt fund advancing infrastructure development across Africa.

Backed by prominent financial institutions, the package unlocks fresh capital to advance EAIF’s strategic, operational and financial capabilities – enabling its investment portfolio to expand and meet rising opportunities in frontier and developing economies.

Allianz Global Investors led the financing on behalf of Allianz Group, one of the world’s leading insurers and asset managers, committing a further €75 million and $50 million to EAIF.

Standard Bank, Africa’s largest lender by assets, provided a $75m multicurrency revolving credit facility with sustainability-linked features and a $25m sustainability-linked term debt facility. KfW, the German state-owned development bank, committed a €60 million loan to EAIF.

Co-head of the Emerging Market Alternative Credit at Ninety One, the fund manager for the EAIF, Martijn Proos, said: “Over the last 20 years, we have developed a diverse portfolio, a unique business model and a distinct approach to investing for impact and returns, whilst maintaining a minimal default rate. The debt financing is a significant milestone and sign of private investor confidence that strengthens our ability to pioneer new models for infrastructure development – enabling the delivery of transformative projects in dynamic geographies, sectors and complex environments that otherwise would not be bankable. We thank Allianz, Standard Bank and KfW for their continued support.”

Chief Executive Officer, PIDG, Philippe Valahu, said: “Action on climate and nature, together with sustainable development, through new and improved access to infrastructure are the central focus of everything we do at PIDG. Marking this significant milestone means we are contributing to the goal of improving climate resilience and economic opportunities for 100 million people by 2030, as outlined in our strategy. But the challenges ahead are too great for any single organisation or country and will require more collaboration. We look forward to being part of this journey alongside our key partners.”

Portfolio Manager, Development Finance, AllianzGI, Aislinn Baker, stated: “We are delighted to see how the EAIF has been helping to unlock Africa’s potential over the last five years which underlines the decisive role private capital plays in blended finance. As one of the early movers in this area, we look forward to seeing how the projects financed by the EAIF will contribute to the further development of infrastructure assets and the energy transition on the continent and facilitate Allianz’s sustainable investment objectives in emerging markets.”

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