The Emerging African Infrastructure Fund lends to private sector businesses in sub-Saharan Africa. Most of our loans are made in US Dollars. We also lend in EUROS.
Our clients want to be able to borrow at competitive rates over timescales that that help them build their businesses, service their debt and generate profits for shareholders. Some territories, sectors and markets in Africa present businesses, investors and lenders with higher risk factors than typically found in wholly developed economies. EAIF offers straightforward loan products that have proven to be right for businesses across sub-Saharan Africa. The maximum tenor (length) of loans is 15 years, with appropriate grace periods.View our Investments policies & Procedures
Maximum loan tenor
million (or euro equivalent)
TRACK RECORD AS
Lead arranger and joint arranger
of debt finance
* where required loan tenor can be up to 20 years
We have the ability to make loans from US$10 million up to US$50 million (or the EURO equivalent) and can lend as a single or co-lender. EAIF has a track record and expertise as a lead arranger and as a joint arranger of debt finance.
We are able to consider providing bridging finance on the basis that it is subsequently converted into a longer term loan consistent with EAIF’s policies and objectives.
As part of our financing options we are able to provide standby debt facilities during the construction phase of a project.
Some infrastructure projects have a need for subordinated and/or mezzanine debt. Because such loans have a higher measure of risk than senior debt, the potential borrower has to be able to demonstrate financial strength and robust cash flow. The terms of an EAIF subordinated loan will reflect the risk profile of each particular transaction.
We will in specific circumstances consider making loans in a local currency, provided that EAIF’s foreign exchange exposure can be hedged or otherwise covered.
EAIF can support debt capital markets issues as an anchor or cornerstone investor for bond issues for companies and projects that meet EAIF’s investment requirements.
EAIF's parent company, the Private Infrastructure Development Group, is a member of the EU Africa Infrastructure Trust Fund (EU-AITF, http://www.eu-africa-infrastructure-tf.net/) Project Financiers Group. As a PIDG facility EAIF can approach EU Africa ITF for grant support to help make projects economically viable and sustainable.
Some projects need access to specialist support and advice to enable them to reach the stage of raising funds on the capital markets. In certain circumstances, the Emerging Africa Infrastructure Fund can provide grant funding to support capacity building initiatives and scope out potential investment opportunities. Called The Technical Assistance Facility (TAF) it is a pool of funding made available by our shareholder, the PIDG Trust.
TAF support is particularly valuable to companies with little or no experience of the public and investor accountability regimes expected of businesses raising funds from public and private sector or institutions with their own duties of accountability. A TAF grant can help EAIF and a client company with areas like risk management evaluation, financial and regulatory mechanisms, corporate behaviours and capital market fund-raising systems and procedures.
Equipment and other capital expenditures are not normally eligible for support under TAF. TAF supports activities and interventions mainly in the public sector, but is also able to support private sector activities where inputs relate to achieving TAF objectives.