LEAPFROG EMERGING CONSUMER FUND IV

Promoteur – Intermédiaire Financier

LEAPFROG INVESTMENTS GROUP LTD

Lieu

• Régional - Afrique
• Régional - Asie

Description

Equity participation in Leapfrog Emerging Consumer Fund IV, a growth equity fund focusing on companies providing innovative financial services and healthcare solutions in Africa, South and Southeast Asia.

Additionality and Impact

The operation concerns an investment in Leapfrog IV, a USD 1bn impact investment fund targeting companies in Sub-Saharan Africa and South and Southeast Asia.

The fund is focused on providing important services to low income customers with a focus on healthcare and financial institutions providing services, insurance and finance to emerging consumers and SMEs.

This operation is in line with the European Commission's priority to promote 

Jobs and sustainable and inclusive growth. It is expected to contribute to EIB objective outside the EU for private sector development and job creation. In terms of jobs, the Fund is expected to not only support job and female job creation, but also to improve employees' wellbeing, decrease inequality and boost job satisfaction.

The project supports the Cotonou (ACP-EU) partnership agreement, specifically cooperation activities to boost social and human development to improve health. It also advances the African Union 2063 Agenda, which also references a healthy indigenous population under its first aspiration.

As founding investor in LeapFrog from very early days, namely, cornerstone investor of Fund I's first close, EIB's renewed participation in Fund IV will be closely watched by other investors for its signalling effect and hence have high additionality in crowding in private investors and enabling a successful fundraise for the Fund Manager in highly uncertain times. EIB's investment will also be additional as EIB's participation would ensure continuous adoption of best practices in areas of sustainable development, gender lens investing and governance. EIB is in discussions with the Manager to consider the inclusion of climate action goals into the Fund and potentially develop an additional climate strategy going forward.

Objectifs

The fund aims to provide equity and quasi-equity support to private companies (small and medium-sized enterprises (SMEs) and mid-market companies) active in healthcare and financial services in Africa and South and Southeast Asia. This approach is supported by its country offices in Lagos, Nairobi, Johannesburg, London and Singapore. The Fund will support the achievement of the sustainable development goals (SDGs), in particular SDG 3 (Good Health), SDG 1 (No Poverty), SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reducing Inequality). The fund plans to provide impact at scale and has a target size of approximately USD 1 billion.

Commentaires

N/A

Secteur(s)

• Services - Activités financières et d'assurance

Montant BEI envisagé (montant approximatif)

USD 60 million (EUR 60 million)

Coût total (montant approximatif)

USD 1000 million (EUR 998 million)

Aspects environnementaux

The fund's operational guidelines will provide for environmental and social due diligence of investee companies according to guidelines acceptable to the Bank.

Passation des marchés

The fund is expected to comply with the EIB's procurement guidelines.

Statut

Signé - 9/12/2022