EIFFEL ENERGY TRANSITION AFRICA FUND

Promoteur – Intermédiaire Financier

EIFFEL INVESTMENT GROUP SAS

Lieu

• Régional - Afrique

Description

Debt fund providing bridge financing solutions to developers and project companies for the construction of renewable energy projects in Africa.

Additionality and Impact

The proposed operation concerns an equity investment in a fund dedicated to providing bridge financing solutions to developers and project companies for the construction of renewable energy projects in Africa. The proposed financing will enable the implementation of small and medium-sized renewable energy projects as well as commercial and industrial ("C&I") systems, which will mitigate the effects of climate change by reducing greenhouse gas emissions. The fund seeks to provide bridge financing, which will accelerate the construction of ready-to-build projects, while allowing developers to reallocate resources to the development of new projects. The EIB has played a key role in ensuring the fund will operate under best market practices and in line with EIB's own requirements in terms of procurement rules, hydro power projects, and so forth. The operation is considered strongly aligned with the EU strategic priority of addressing climate change, including in developing countries, to help achieve the aims of the Paris Agreement, and with the objectives in this respect that have been laid out in the NDICI regulation. The operation is strongly aligned with the objectives of African countries, as it will support them in the implementation of their agreed Nationally Determined Contributions.

Objectifs

The fund will provide bridge financing solutions to renewable energy developers to develop and build small and medium-sized solar photovoltaic (PV), energy storage, onshore wind, small hydro, biomass projects located on the African continent including island countries (Cape Verde, São Tomé and Príncipe, Comoros, Mauritius, and Madagascar).

Secteur(s)

• Énergie - Production et distribution d'électricité, de gaz, de vapeur et d'air conditionné

Montant BEI envisagé (montant approximatif)

USD 38 million (EUR 36 million)

Coût total (montant approximatif)

USD 150 million (EUR 143 million)

Aspects environnementaux

The fund will be required to develop an environmental and social policy and establish the appropriate management systems so as to comply with the environmental and social requirements of the Bank. The assessment of the environmental, climate and social impacts and risks will be part of the standard due diligence process that the fund will have to carry out for each underlying investment, thereby ensuring that the portfolio and these investments are in compliance with national law and in line with the principles and standards of relevant EU environmental legislation as well as EIB Environmental and Social Standards.

Passation des marchés

The EIB will require the fund manager to take all requisite measures to ensure that contracts for implementation of the projects financed by the fund will be tendered in line with the Bank's Guide to Procurement.

Statut

Signé - 16/12/2022