AFRICAN INFRASTRUCTURE INVESTMENT F
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
African Infrastructure Investment Fund 3 Partnership (AIIF3) is a sub-Saharan Africa-infrastructure focused private equity fund with a target size of US$750 million, managed by African Infrastructure Investment Management (AIIM). Old Mutual Group, AIIM’s owner and sponsor, will anchor AIIF3 supported by FMO and two other European DFI’s as other first close investors
What is our funding objective?
AIIF3 plans to make 12 - 16 investments of control or significant influence in Sub-Saharan African assets with core infrastructure characteristics with a focus on greenfield or core-plus opportunities (including among others power, gas or water distribution, roads, air- and seaports, (renewable) power generation and communication towers). At first close AIIF3 kick starts with a seed portfolio including among others an African mini hydro power developer, a majority stake in a Tanzanian dry bulk terminal operator and a 90MW greenfield thermal power plant in Mali.
Why do we fund this investment?
Infrastructure development is a key driver for progress across the African continent and a critical enabler for productivity and sustainable economic growth. Investments in infrastructure has accounted for more than 50% of the recent improvement in economic growth in Africa, and has the potential to achieve even more. By investing in AIIF3, FMO seeks to address the market need for infrastructure in Sub-Sahara Africa in a sustainable and responsible manner.
What is the Environmental and Social categorization rationale?
AIIF3 is a private equity fund focused on making commercial investments throughout Africa, aiming to improve the continent’s infrastructure. Due to the nature of infrastructure investments, E&S risks are likely to arise and need dedicated time and attention. PS 1 through 8 can be triggered in the transactions AIIF3 is looking at, which E&S risks are managed by a qualified team of professionals dedicated to E&S topics, supported by a strong E&S Management System which has been developed over the last 6 years. Development Finance Institutions – including FMO – played a significant role in the development of this ESMS which is currently fully operational. FMO continues to engage frequently with the fund manager to monitor and give feedback to the fund’s E&S performance. In addition, FMO will keep engaging with AIIM on ways to add value and maximize impact together.
More investments
| Date | Total FMO financing |
|---|---|
| 7/27/2020 | USD 11.00 MLN |
- Website customer/investment
- https://aiimafrica.com
- Region
- Africa
- Country
- Africa
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 5/29/2017
- Total FMO financing
- USD 35.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A